Wednesday 06 / November / 2024
Muscat: Oil and gold prices dropped following Donald Trump's declaration of victory in the US presidential election
Gold prices dropped to nearly a three-week low on Wednesday as the dollar retained its strength following Donald Trump's victory.
Investors are now closely watching the upcoming Federal Reserve's meeting for insights on future monetary policy.
Spot gold fell by 0.8 percent to $2,721.21 per ounce, down from a record high of $2,790.15 reached last Thursday. US gold futures also declined by 0.7 percent to $2,730.20 per ounce.
The US dollar reached a four-month high, making gold more expensive for buyers holding other currencies. Gold, traditionally a hedge against inflation, becomes less attractive when interest rates rise, as it offers no yield.
Oil prices drop
Oil prices fell by nearly 2 percent on Wednesday following Donald Trump's announcement of victory in the US presidential election.
The decline was also driven by a strengthening dollar.
Brent crude futures dropped by $1.25, or 1.65 percent, to trade at $74.28 per barrel, while US West Texas Intermediate (WTI) crude declined by $1.25, or 1.74 percent, to $70.74 per barrel.
The US dollar is on track to register its largest daily gain against major counterparts since March 2020. A stronger dollar makes dollar-denominated commodities like oil more expensive for holders of other currencies.
Market sources, citing data from the American Petroleum Institute (API), reported that US crude oil inventories rose by 3.13 million barrels in the week ending 1 November 2024, surpassing an anticipated increase of 1.1 million barrels.
Meanwhile, oil and gas producers in the US Gulf of Mexico have begun shutting down production as Tropical Storm Rafael is expected to intensify into a Category 1 hurricane.
