Gold boosted by dollar decline, market concerns after OPEC+ decision
Gold prices rose on Monday as the dollar declined against most major rivals following OPEC+ decision to voluntarily cut output and assess its impact on the economy and markets.
OPEC+
In a surprise move, OPEC and allies including Russia announced voluntary production cuts amounting to 1.65 million bpd starting May and until the end of the year.
The step came outside the usual timeline for the global alliance to review market conditions, which was supposed to happen today, Monday.
However, such a move will increase inflationary pressures and force central banks to extend the path of policy tightening in Europe and the US.
Earlier data showed US ISM manufacturing PMI fell to 49.2 in March from 51.3 in the previous reading, missing estimates of 51.2.
Otherwise, the dollar index fell 0.4% as of 19:11 GMT to 102.09, with a session-high at 103.06, and a low at 101.9.
Gold spot prices rose 0.7%, $14 as of 19:12 GMT to $2,000.2 an ounce.
Wall Street edges up as energy shares spike following OPEC+ decision
Most US stock indices rose on Monday on the back of energy shares, while NASDAQ was pressured by the weakening tech sector.
OPEC+
In a surprise move, OPEC and allies including Russia announced voluntary production cuts amounting to 1.65 million bpd starting May and until the end of the year.
The step came outside the usual timeline for the global alliance to review market conditions, which was supposed to happen today, Monday.
However, such a move will increase inflationary pressures and force central banks to extend the path of policy tightening in Europe and the US.
On trading, Dow Jones rose 1%, or 342 points as of 14:22 GMT to 33,615, while S&P 500 climbed 0.4%, or 15 points to 4,124, as NASDAQ added 0.38%, or 43 points to 12,178.
Brent spikes 7% after surprise OPEC+ decision
International benchmark Brent spiked 7% in European trade on Monday on track for the third straight profit, hitting one-week highs after the surprise OPEC+ decision to cut output starting next month.
Brent Prices Today
Brent rose 6.75% to $85.09 a barrel, marking March 7 highs, with a session-low at $84.52.
Brent rose 1.6% on Friday, the second profit in a row as Kurdish supplies were disrupted.
Legal disputes between Iraq and the semi-independent Kurdistan region led to a cut in crude exports amounting to 450 thousand bpd.
Turkey stopped Kurdistan's crude pipeline exports following a court order to required the Iraqi government's approval to ship the crude.
Surprise OPEC+ Decision
In a surprise move, OPEC and allies including Russia announced voluntary production cuts amounting to 1.65 million bpd starting May and until the end of the year.
The step came outside the usual timeline for the global alliance to review market conditions, which was supposed to happen today, Monday.
That cut adds to a previous cut agreed upon in October 2022 and amounting to 2 million bpd.