Gold Prices Edge Lower; Oil Futures Revisit Close To Multi-Month Lows
ICM Brokers | Sep 15, 2014 03:15AM ET
Crude Oil
Crude Oil futures revisited levels close to multi-month lows on Friday, as ample global supplies and concerns about a slowdown in demand continued to weigh. The U.S. Energy Information Administration, the Organization of the Petroleum Exporting Countries and the International Energy Agency all cut their estimates for oil-demand growth earlier in the week, fuelling concerns over a slowdown in global demand. A broadly stronger dollar also weighed, as expectations for an early hike in U.S. interest rates continued to bolster investor demand. Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies In the week ahead, investors will be focusing on the outcome of Wednesday’s Federal Reserve policy meeting. Fed Chair Janet Yellen was to hold a press conference following the meeting.
Gold
Gold prices edged lower on Friday after upbeat U.S. data fueled speculation that the Federal Reserve will make fresh cuts to its bond-buying program at a policy meeting next week, with added hopes that language may hold clues as to when rates may rise also pushing the yellow metal lower. Gold dips on strong U.S. data, Fed prospects Gold falls on expectations for Fed to wind down stimulus programs, mull rate hikes The report came after official data showed that U.S. retail sales rose 0.6% last month, in line with expectations. Retail sales for July were revised to a 0.3% gain from a previously estimated flat reading. July's figure was revised to a 0.3% gain from a previously estimated 0.1% rise. Friday's data fueled already growing expectations that the Federal Reserve will hike interest rates earlier than markets were expecting, with tightening seen taking place now in mid-2015. A study released by the San Francisco Feb on Monday indicated that central bank officials see rates rising sooner than markets expect. Loose monetary policies such as stimulus programs bolster gold due to its appeal as a hedge to a weaker dollar, while talk of tightening has the opposite effect.
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