Friday’s Oil And Gold Outlook
ICM Brokers | Aug 01, 2014 03:08AM ET
Crude Oil
Oil prices dropped on Thursday on fears that despite an improving U.S. economy, supplies are far outstripping demand. Crude drops on concerns that supply may be outstripping demand Oil plummets on fears of global supply glut OPEC countries pumped more oil in July than in June, according to Reuters data, which sent oil futures dropping on fears the world is awash in crude. Reuters reported that supply from OPEC member states averaged 30.06 million barrels per day (bpd) in July, up from 29.92 million bpd in June. Fears that conflicts in the Middle East were going to disrupt supply never panned out, which softened oil prices despite consensus that the global economy continues to recovery, the U.S. especially.
Gold
Gold prices fell to six-week lows on Thursday, as hopes that Friday's U.S. jobs report will come in solid chipped away at the precious metal's safe-haven appeal. Gold drops to six-week lows on U.S. economic optimism Gold falls as market bets on a more upbeat U.S. economy The Labor Department on Friday will release its July nonfarm payrolls report, and consensus forecasts see the U.S. economy picking up 233,000 new jobs. Even if the figure comes in below that number, a reading over 200,000 would represent six straight months of beating that threshold, a sign the labor market is improving even if it's still a little slack. The Labor Department added that the employment cost index rose by 0.7% in the three months to June after a 0.3% increase in the first quarter. Economists had expected a 0.5% gain.
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