Gold keeps to 3-week peaks, US crude oil below $40

Gold keeps to 3-week peaks, US crude oil below $40

On Monday, during European trade gold prices slumped as market participants considered buying into surging equity markets rather than buying safe-haven assets, though prices kept to three-week peaks amid waning hopes that the Fed will lift interest rates a bit later soon.  

In New York, December delivery gold futures slumped 0.18%, being worth $1,355.05 per troy ounce.

On Friday, gold prices leapt to a daily high of $1,362.00, the greatest value since July 11, after data demonstrated that the American economy surged much slower than expected during the second quarter, thus bringing the greenback to five-week minimums and helping market players to roll back hopes for a rate lift from the Federal Reserve.

The second quarter GDP boasted a 1.2% annualized growth rate, which is below hopes for a 2.6% surge, as the Commerce Department reported on Friday. as for the first quarter GDP, it got revised lower from 1.1% to 0.8%.

The disappointing data lessened the overall threat of an early interest rate hike from the Federal Reserve. 

U.S. crude breaks below $40 as oil ends down 4 percent on glut

Reuters - U.S. crude tumbled below $40 per barrel on Monday for the first time since April, as oil prices settled down nearly 4 percent on heightened worries of a crude glut despite peak summer fuel demand.

A near 15-percent slump in U.S. crude prices in July, the worst monthly loss in a year, also triggered liquidation as trading began for August.

U.S. West Texas intermediate (WTI) crude plumbed $39.86, its lowest since April 20, before settling at $40.06, down $1.54, or 3.7 percent.

Brent crude closed down $1.39, or 3.2 percent, at $42.14 a barrel, after a session low of $41.87.

Not all oil statistics are bearish. A Reuters poll on Monday showed U.S. crude stockpiles may have fallen last week for the first time in 10 weeks.

Other data from last week showed the United States added 44 oil drilling rigs in July, the most for a month in two years, intensifying concerns that global production could again get to unmanageable levels like in 2014-2015.

Crude prices remain nearly 55 percent above 12-year lows of $26 to $27 hit in the first quarter.

But WTI and Brent have also slipped into bear market territory since last week after losing more than 20 percent from the 2016 highs above $50 that were hit in June.

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