Monday has placed investors in a celebratory mood and supporting them to take riskier moves. Consequently, more risky assets (like crude oil) rallied, while more reliable assets (such as gold) failed.
The Asian stocks showed a broad-based rally throughout the Asian trading session on.
Market analysts consider, though, that the commodities may still convert their moves later in the week.
Gold can get help from the outlook for fiscal stimulus in the United States. Such a viewpoint is dangerous to the US dollar and positive for bullion, which often trades inversely to the dollar.
Meantime, crude oil is under stress from a growing supply in the USA.
Baker Hughes announced that US oil drillers expanded the figure of rigs by 2 to 289 last week. The fraction of gas rigs grew by 3 to 88. It was the ninth continuous weekly gain, though the complete number is yet 52% lower than the prior year’s same period.
The latest week’s data from the Energy Information Administration revealed an unexpected build of US inventories of crude by 4.4 million barrels.
Futures for delivering WTI crude oil in March surged by $0.29 (0.55%) to $52.56 per barrel as of 07:39 GMT on NYMEX today. The deal for Brent crude totalled $0.31 (0.56%) to its price to trade at $55.72 per barrel on ICE. In February, natural gas for delivery surged by $0.07 (2.82%) to $2.52 per million British thermal units on NYMEX.
Simultaneously, gold for delivery in April declined by $6.2 (0.33%) to $1,853.7 per troy ounce on COMEX. March silver was little modified at $25.55 per ounce. Meantime, copper improved by $0.0065 (0.18%) to $3,6325 per pound.