Oil Dips on Rising Supply While Gold Gains on Fed Rate-Hike Doubts
Commodity markets saw mixed movements on October 5, as oil prices dipped while gold gained traction. The decline in oil prices came amid rising crude exports from the Middle East and the release of oil stocks by Group of Seven nations. These factors increased global supply, despite ongoing worries about potential damage to Gulf oil infrastructure due to the Iran war.
Brent crude futures dropped by 35 cents, or 0.34%, to settle at $101.90 per barrel. Meanwhile, US West Texas Intermediate crude fell by 62 cents, or 0.68%, reaching $90.49 per barrel.
On the other hand, gold prices edged higher as softer economic data reduced the likelihood of a Federal Reserve rate hike in October. This development boosted demand for gold, which does not offer yield, making it more appealing to investors.