Gold and silver increases while oil dips
The precious metal prices increased on April 21. On Multi Commodity Exchange, gold futures rose by 0.4%, while the white metal gained 0.9%.
In international markets, gold rates were flat, giving up early gains. Meanwhile, spot gold boosted by 0.1% and settled at $1,778.19. Remarkably, it increased by 0.6% in the previous session.
Weakening U.S. bond yields supported the yellow metal, but gains were capped by a stronger greenback.
Today, the greenback recovered from a seven-week low hit overnight, making the yellow metal expensive for holders of other currencies. Moreover, benchmark 10-year U.S. Treasury yields dipped below 1.6%, reducing the opportunity cost of holding non-yielding bullion.
Furthermore, silver increased by 0.1% at $25.89 per ounce. Palladium is up by 0.4% to $2,778.93 and platinum was trading at $1,187.
Oil dips amid concern that resurgent infections will harm demand in some economies
Oil sank amid concern that a resurgent virus will harm demand in some economies. Meanwhile, industry data indicated a slight increase in U.S. inventories.
West Texas Intermediate shrank 2.1%, extending Tuesday’s slump. The renewed spread of coronavirus in countries such as India casts a pall over the global economic recovery, even as signs of an improvement in energy demand elsewhere continue to mount. Moreover, prices also responded to a slightly stronger greenback, which curbs the appeal of commodities priced in the currency.
Another essential thing to mention is that oil’s value has boosted by more than a quarter this year as vaccines are rolled out and mobility increased.
According to Giovanni Staunovo, a commodity analyst at UBS Group AG, a stronger dollar and concern that increasing coronavirus infections will slow down the oil demand recovery” are underpinning price moves on Wednesday.
Moreover, the American Petroleum Institute reported a 436,000-barrel weekly gain in crude stockpiles, while gasoline supplies dropped by over 1.6 million barrels. If confirmed by the government later on April 21, it would be the first build in crude inventories in four weeks.
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