Oil prices fell Tuesday as fears of a recession and worsening Corona virus outbreak in China raised expectations of lower fuel demand, outstripping supply concerns, and gold prices fell, impacted. from a slight rise in the dollar as investors awaited inflation data in the United States.
Brent crude fell as low as $ 97.17 per barrel at 09:30 UTC, while US West Texas Intermediate crude fell as low as $ 90.90.
The two crude oils hit their highest level since August on Monday amid reports that Chinese leaders, the world’s largest crude oil importer, are looking to lift the country’s stiff restrictions to fight Covid-19.
But over the weekend, Chinese health officials confirmed their country’s commitment to its rigorous approach to achieving “zero Covid”. The latest data also showed that Chinese exports and imports contracted unexpectedly in October.
The strength of the dollar has affected oil prices, as crude oil is generally priced in dollars, so a stronger dollar makes the commodity more expensive for holders of other currencies.
Tina Ting, analyst at CMC Markets, said market participants will be eagerly awaiting the US CPI data this week for guidance on trading and added, “Against the backdrop of difficult inflation and high interest rates in major Western countries, oil futures are still in place considering the possibility of a global economic recession.
gold is going down
Gold prices fell on Tuesday, hit by a slight rise in the dollar as investors awaited US inflation data, released this week, and could influence the US Federal Reserve’s (US Central Bank) decision on increased interest rates.
Spot gold was down 0.3% to $ 1,669.73 an ounce by 06:15 UTC. Prices reached a 3-week high in the previous session, supported by a weak dollar.
U.S. gold futures fell 0.5% to $ 1,672.70 an ounce and the dollar index rose 0.2%, making the precious metal more expensive for overseas buyers and the US Consumer Price Index report is expected on Thursday.
Gold is considered a hedge against inflation, but higher interest rates reduce the attractiveness of the non-productive metal and investors are also focused on the mid-term elections in the United States to be held later today, Tuesday, and they will determine which party will control Congress and could stimulate moves in all markets.
As for other precious metals, silver fell 1% in spot trades to $ 20.56, platinum fell 0.4% to $ 975.19, and palladium fell 0.5% at $ 1887.17.
