Oil And Gold Analysis: Oil Rises On Monday, Gold Plunges Below 1200
ICM Brokers | Apr 21, 2015 03:43AM ET
CL
Oil prices rose on Monday after a drop in stockpiles at the delivery point for U.S. crude in the second half of last week outweighed pressure from near record high production in Saudi Arabia. Tensions in the Middle East and a drop in the number of rigs drilling for oil in the United States also put a floor beneath U.K. North Sea Brent and U.S. crude futures. Earlier on Monday, energy data provider Genscape, Inc. said crude stockpiles at the Cushing Oil Hub in Oklahoma rose by 500,000 barrels last week, an increase far below recent weekly buildups. Meanwhile, Oil got a further boost after the People's Bank of China lowered the amount of deposits it requires banks to hold as reserves to 18.5% from 19.5% in an effort to spur economic activity.
GOLD
Gold prices plunged below $1,200-level on Monday, after China's central bank cut banks' reserve requirement ratios in a surprise decision over the weekend and as uncertainty over Greece’s bailout negotiations with its creditors remained in focus. The People's Bank of China lowered the amount of deposits it requires banks to hold as reserves to 18.5% from 19.5% effective April 20, it announced on Sunday. The move came after official data last week showed that China’s economy grew 7.0% in the first quarter, the slowest pace of growth since the global financial crisis in 2008. Meanwhile, concerns over the lack of an agreement on economic reforms for bailout funds between Greece and its creditors remained in focus, fuelling fears that the debt-strapped nation could be forced out of the euro zone.
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