Global markets opened the week on a mixed note Monday, as oil prices rose in early trading supported by hopes of a trade agreement between the United States and China, while gold prices declined under pressure from a stronger dollar and easing trade tensions between the world’s two largest economies.
اضافة اعلان
Brent crude futures climbed 46 cents, or 0.7%, to $66.40 per barrel, while U.S. West Texas Intermediate (WTI) gained 46 cents, or 0.75%, to $61.96 per barrel. Both benchmarks extended last week’s strong gains of about 9% for Brent and 7.7% for WTI, driven by new Western sanctions on Russia.
According to Haitong Securities, market sentiment improved amid these sanctions and reduced tensions between Washington and Beijing, easing concerns about an oversupply that had weighed on prices earlier in the month.
U.S. Treasury Secretary Scott Besant said that economic officials from both countries had reached a “highly substantive framework” for a trade agreement during a meeting in Kuala Lumpur, adding that this framework would allow President Donald Trump and Chinese President Xi Jinping to discuss the details of trade cooperation later in the week.
Besant explained that the agreement would prevent the imposition of 100% U.S. tariffs on Chinese goods and delay China’s export controls on rare earth metals, boosting investor risk appetite and lifting oil prices.
In contrast, gold prices fell as the dollar strengthened and investors’ appetite for riskier assets improved. Spot gold declined 0.5% to $4,092.76 per ounce, while U.S. gold futures for December delivery fell 0.7% to $4,106.80 per ounce.
Gold’s drop coincided with the dollar hitting a two-week high against the yen, making the precious metal more expensive for holders of other currencies. Investors are now awaiting the U.S. Federal Reserve meeting on Wednesday, with expectations of a quarter-point rate cut, which could determine gold’s next move in the markets.
Gold typically gains during periods of lower interest rates, while oil tends to benefit from signs of improving global growth and higher energy demand.
As for other precious metals, silver slipped 0.3% to $48.44 per ounce, platinum rose 0.5% to $1,612.95, and palladium edged up 0.2% to $1,431.94 per ounce.
Reuters
