Strong Dollar Makes Oil Less Attractive
ICM Brokers | Oct 31, 2014 02:28AM ET
Crude Oil
West Texas Intermediate oil fell on Thursday after upbeat U.S. growth data and a Federal Reserve decision to close its monthly bond-buying program bolstered the dollar. A stronger greenback makes oil and less attractive commodity on dollar-denominated exchanges, especially in the eyes of investors holding other currencies. Crude Oil futures for delivery in December traded down 1.34% at $81.10 a barrel during U.S. trading, up from a session low of $80.81 a barrel and off a high of $82.09 a barrel. Ongoing concerns that the world remains awash in crude pressured prices lower as well, as Asian and European economies are facing headwinds, which are offsetting the bullish effects U.S. recovery would otherwise have on oil.
GOLD
Gold prices dropped on Thursday in wake of upbeat U.S. growth data and a Federal Reserve decision to close its monthly bond-buying program. Ultra-loose U.S. monetary policies that have supported gold prices since the 2008 financial crisis are on their way out now that the economy is gaining steam. China sent investigators to probe a seven-fold surge in September’s precious-metals exports, raising concern that demand in the world’s largest consumer may decline. In India, the second-biggest user, imports are set to drop in October after a more than four-fold jump last month.
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