Gold Prices Slip As Geopolitical Worries Fade
ICM Brokers | Aug 12, 2014 01:57AM ET
Crude Oil
Crude oil fell in Asia as support from global tensions dwindled and the market awaited stocks data in the U.S. this week to set the tone. Investors covered short positions and bet that Wednesday's weekly U.S. supply report will reveal a solid draw. tip on the magnitude of stocks will be seen from industry group, the American Petroleum Institute, which release its own data later Tuesday. In its last report, the group said weekly crude stocks fell 5.5 million barrels on the week. Last week, the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 1.8 million barrels in the week ended Aug. 1, beating expectations for a decline of 1.7 million barrels.
Gold
Gold prices slipped on Russia's decision to conclude military exercises on its border with Ukraine, while a cease fire in Gaza also chipped away at the yellow metal's safe-haven appeal. Reports that Russia has ended the military exercises it was conducting near the Ukraine border gave the dollar room to rise on Monday in a session void of major market-moving indicators, which ate into gold's appeal as a hedge. Gold and the dollar tend to trade inversely with one another. A U.S. decision to launch airstrikes in Iraq to halt a insurgency gave the greenback support as well, as fears that the country was on the edge of chaos continue to wane.
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