Crude Drops On Fresh EU-Russia Sanctions
ICM Brokers | Jul 31, 2014 03:48AM ET
Crude Oil
A U.S.-European decision to slap fresh sanctions on Russia for allegedly meddling in Ukraine sent crude futures falling on Wednesday, offsetting otherwise bullish U.S. growth and inventory data. Crude drops as Russia sanctions eclipse solid U.S. economic growth data Crude falls on fears Russian sanctions will dampen global recovery. The U.S. announced on Tuesday that Washington was slapping sanctions on Russian energy, defense and financial sectors on accusations that Moscow continues to support separatists in the Ukraine while amassing troops along its Ukrainian border. The measures block of exports of certain goods and technologies bound for Russia's energy sector, toughen up sanctions on Russian financial and defense companies as well as suspend credit that encourages exports to Russia as well as finance development projects.
Gold
Gold prices trimmed earlier losses sustained from an upbeat U.S. gross domestic product report on Wednesday as a dovish take from the Federal Reserve on the labor market bolstered the yellow metal's appeal as a hedge to loose monetary policy. Gold trims losses on Fed's dovish take on labor market Gold comes off earlier lows on Fed's less-than-stellar take on the economy Despite improvements taking place in the economy and in the jobs sector as well, slackness remains in the labor market, which prompted the Federal Reserve on Wednesday to stick with its policy of making $10 billion cuts to its monthly bond-buying program as the year unfolds. The Fed is currently purchasing $25 billion in Treasury and mortgage debt securities a month to spur recovery, which tends to boost gold prices by keeping interest rates low. Markets were hoping for a more upbeat take on the economy.
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