OIL
Brent oil prices declined in early European trading as markets brushed aside concerns about escalating Middle East tensions and their potential impact on crude supplies, instead focusing on oversupply worries and weakening demand. China, the world's largest crude importer, has shown sluggish demand as its economic growth continues to slow. Meanwhile, OPEC+, led by Saudi Arabia, appears poised to increase production in December. Given these factors, Brent crude prices will likely remain around current levels, near $70 per barrel, with the possibility of further downside.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
GOLD
Gold prices edged higher in early Tuesday trading, recouping some of the losses from the previous two sessions. Demand for the precious metal remains strong, with prices hovering just below last week's all-time highs, supported by haven trades and the prospect of lower US interest rates. However, the economic stimulus package recently announced by the Chinese central bank has somewhat capped the upside for bullion. The measures, aimed at revitalising the stalling Chinese economy, have increased risk appetite in financial markets, particularly boosting Chinese equities and diverting some investment away from gold. In this environment, traders are now focusing on a flurry of data releases expected by the end of the week, including US labour and PMI figures. Strong readings could create additional headwinds for gold, while weaker data may reignite the rally for the precious metal.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.