Oil Dips on Rising Supply While Gold Climbs on Softer Fed Rate-Hike Bets
Commodity markets saw mixed trading on October 5, with oil prices declining due to increased supply. Rising crude exports from the Middle East and a release of oil stocks by the Group of Seven (G7) nations contributed to the slip in prices. Despite concerns over potential damage to Gulf oil infrastructure due to the Iran war, Brent crude futures dropped 35 cents, or 0.34%, to $101.90 a barrel. Similarly, US West Texas Intermediate crude fell 62 cents, or 0.68%, to $90.49 a barrel.
Meanwhile, gold prices edged higher as softer economic data reduced expectations of a Federal Reserve rate hike in October. This boosted demand for the non-yielding asset, with spot gold rising 0.4% to $1,958.17 per ounce. US gold futures for December delivery increased 0.6% to $1,986.40. The recent slowdown in US job growth and revised lower nonfarm payrolls data for the prior two months further supported gold's appeal.
Other precious metals also saw gains, with silver climbing 1.3% to $61.15 an ounce after a significant drop last week. Platinum and palladium advanced as well. The dollar started the week firmly, hovering near a 17-month high as traders reacted to the receding odds of a Federal Reserve rate hike this month and fiscal worries in France.