Gold prices lower as the dollar extends surge
Gold hit its lowest level since late may on Friday as the dollar surged to a near 14 –year high on expectation for a US rate hike next month and more infrastructures spending from the new Trump administration.
The US currency is on track for its best fortnight versus yen having hit its highest since 2003 versus a currency basket.
US bond yields were rise highest in last 15 years on Friday as bets US inflation and interest rates were headed higher. That increased the opportunity cost of holding non-yielding bullion.
Crude oil set for gain on optimism of OPEC deal
Brent crude oil prices were headed for their weekly gain buoyed by renewed hopes that OPEC might agree production cuts, but a stronger US dollar capped gains.
Sources from Reuters said that OPEC member countries have proposed Iran cap its oil output at 3.92 million barrels per day (bpd)under a production –limiting deal for the whole group while Iran has not yet responded to the proposal, it means that OPEC members may be coming nearer to a consensus on how much Iran should produce.
Iran has though sent mixed signal that it would may freeze in between 4.0 and 4.2 million bpd.
Saudi Arabia Minister though said that he was optimistic about OPEC’s deal to limit oil output cut and can boost the oil prices.