Oil prices surged due to Trump’s revocation of Chevron’s Venezuela license and concerns over global supply disruptions. Gold prices fell alongside a strengthening dollar following U.S. economic data indicating slower growth and rising unemployment claims. Traders anticipate further market impacts from impending economic reports and tariff discussions.
Oil prices saw an increase on Thursday, boosted by concerns over global supply disruptions following President Donald Trump’s decision to revoke Chevron’s operating license in Venezuela. This action removed a license granted two years prior by the previous administration, further tightening the energy situation amid ongoing U.S. sanctions against Venezuela, Iran, and Russia. In trading, Brent crude futures for April rose 2.1%, reaching $74.04 a barrel, while U.S. crude futures also advanced 2.5%, to $70.35 a barrel.
Additionally, gold prices dropped to their lowest levels since early February, primarily due to a strengthening U.S. dollar against major currencies after recent economic data releases. U.S. GDP growth for the fourth quarter showed a rise of 2.3%, down from 3.1% in the previous quarter, while unemployment claims increased by 22,000, reaching 242,000, exceeding expectations of 222,500.
The dollar index experienced a rise of 0.8%, reaching a session high of 107.2. Concurrently, the Canadian dollar and Australian dollar weakened by 0.7% and 1.1%, respectively, against their U.S. counterpart. As the Federal Reserve’s anticipated interest rate cuts became less likely, investors looked to upcoming GDP growth and unemployment claim data for further insights.
In terms of gold trading, prices fell by 1.35%, settling at $2877 an ounce, and further volatility is expected as a result of profit-taking following recent highs. Gold holdings in the SPDR Gold Trust also saw a decrease of 0.86 tons, amounting to a total of 906.96 tons, moving away from August 2023’s top figures. The market remains cautious as additional tariffs on Mexico and Canada are set to impact commodity prices and inflation concerns are rising among traders.
In summary, oil prices increased following President Trump’s actions against Chevron in Venezuela, intensifying global supply concerns. Concurrently, gold prices fell as the dollar strengthened amid disappointing economic indicators and tariff discussions. The anticipation surrounding U.S. GDP and unemployment data is expected to influence further market movements. Investors are on alert as monetary policy discussions are ongoing, particularly regarding inflation and interest rates.
Original Source: www.economies.com
