Oil increased to four-week high; gold and silver fell
Oil prices extended gains on April 16 and were on course for a weekly increase of nearly 7%. Oil demand outlook improved in China and America, both countries recover from pandemic, which offets concers about spikes in coronavirus infections.
Brent crude futures increased by 0.5% which equals 30 cents and settled at $67.24 a barrel. Meanwhile, on Thursday it boosted by 36 cents.
U.S. West Texas Intermediate crude futures gained 0.4% or 28 cents and traded at $63.74. Remarkably, in the previous session it surged 31 cents.
China’s 2021 net crude oil imports are expected to gain 3.4% in 2021 again 202 to nearly 11.2 million barrels per day.
China witnessed a record 18.3% jump in economic growth in the first quarter from a COVID-induced decline earlier last year, though the pace of expansion is likely to moderate later in the year.
According to Justin Smirk, the Westpac senior economist, there’s a clear risk prices could increase to $70 a barrel before a more meaningful pull back
Gold and silver prices fell after posting substantial gains in the previous session
Gold and silver prices fell on Friday in Indian markets after posting big gains in the previous session. On Multi Commodity Exchange, gold futures dipped by 0.12% to Rs 47,120 per 10 gram. Meanwhile, silver fell by 0.26% to Rs 68,361 per kg. The yellow metal had boosted by 1.2% in the previous session while the white metal had risen 1.2%. Despite today’s drop, gold is sharply up this month, recovering from levels of Rs 44,000.
In international markets, gold rates were steady today. Rates were on track for a second straight weekly gain. Meanwhile, spot gold was flat at $1,763.46 per ounce.
Additionally, silver was also flat at $25.85, while platinum increased by 0.5% to $1,198.21.
Gold prices got a lift this week as US Treasury yields dropped to one-month lows on Thursday. Inflationary concerns and ultra-low interest rates across the globe also kept gold supported. Remarkably, lower returns from bonds decrease the opportunity cost of holding non-yielding bullion.
The precious metal was also supported this week after Federal Reserve Chairman Jerome Powell revealed his dovish stance on monetary policy.
Still, a recovery in U.S. retail sales in March, decline in weekly initial claims for state jobless benefits supported gold’s increase.
Additionally, ETF interest remained weak. Holdings of the biggest gold-backed exchange-traded fund (ETF), SPDR Gold Trust, declined 0.3% on Wednesday from Tuesday.
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