Gold prices edge up as dollar tapers off
Gold prices rose on Monday mildly as the dollar weakens against most major rivals while markets assess the Federal Reserve's upcoming policies.
Allianz chieft economist Muhammad Al-Aryan said that while concerns about a US debt default have subsided, markets now are looking forward to the Fed's efforts to contain inflation.
Despite risks surrounding high interest rates in the last 15 months, the tech sector was particularly bullish amid the AI industry boom.
It's worth mentioning that Congress recently approved a bill raising the US debt ceiling until January 2025.
However, Fitch Ratings maintained US government debt under negative review amid uncertainty about the gaps in US financing and debt.
On data, the US ISM services PMI slid to 50.3 in May from 51.9 in April, missing estimates of 52.6.
Otherwise, the dollar index stabilized at 104.04 as of 18:41 GMT, with a session-high at 104.4, and a low at 103.9.
Gold spot prices rose 0.3%, or $6 as of 18:42 GMT to $1,975.6 an ounce.
Wall Street leans higher as the week opens up
US stock indices mostly rose on Monday as investors assess latest developments in monetary policies.
Allianz chieft economist Muhammad Al-Aryan said that while concerns about a US debt default have subsided, markets now are looking forward to the Fed's efforts to contain inflation.
Despite risks surrounding high interest rates in the last 15 months, the tech sector was particularly brilliant amid the AI industry boom.
It's worth mentioning that Congress recently approved a bill raising the US debt ceiling until January 2025.
However, Fitch Ratings maintained US government debt under negative review amid uncertainty about the gaps in US financing and debt.
On trading, Dow Jones fell 0.2%, or 84 points to 33,687 as of 15:36 GMT, while S&P 500 added 0.1%, or 3 points to 4,286, as NASDAQ climbed 0.2%, or 20 points to 13,260.
Brent hits five-week high as Saudi production declines
International Benchmark Brent rallied over 3% in European trade for the third straight session, hitting five-week highs after Saudi Arabia vowed a production cut of a million bpd for a month in July.
The OPEC+ alliance decided to extend current production cuts for an additional year to achieve stability and support weakening prices.
Brent rose 3.25% today to $76.68 a barrel, the highest since May 2, after surging 2.7% on Friday, the second profit in a row.
Saudi Production Cuts
Saudi Arabia, OPEC's largest oil producer, announced a voluntary production cut of a million bpd starting July for a single extendable month.
Saudi Arabia's oil minister described the cut as a "gift" to stabilized the market, noting that recent OPEC+ decisions don't target a specific price range.
OPEC+ Decisions
The OPEC+ alliance in accordance with Russia decided to extend production cut for another year starting January 2024.
The oil cartel is currently executing a cut of 3.65 million bpd starting last May to the end of the year.
Russian deputy prime minister Alexander Novak said that extending production cuts for a year would serve to stabilize the market.
Estimates
The Australian Commonwealth bank says that Saudi Arabia might extend its production cuts into July if Brent futures remained between $70 and $75 a barrel.
Swiss franc hovers near two-month low following inflation data
Swiss franc fell in European trade for a second session against dollar, almost hitting two-month lows following Swiss inflation data.
Such data showed consumer prices slowed down in May for the third month in a row as pressures ease off on Swiss National Bank's policymakers.
The dollar rose 0.4% against Swiss franc to 0.9120, with a session-low at 0.9074, after closing down 0.4% on Friday, resuming losses and recovering from two-month lows at 0.9148.
Swiss Inflation
Swiss consumer prices rose 2.2% in May, slowing down from 2.6% in the precious reading, above estimates of 2.1%.
Such data reduced inflationary pressures on SNB's policymakers and hurt chances of a 0.5% rate hike at the June meeting.
Swiss Rates
Swiss interest rates remain around 1.5%, the highest since 2008, almost the last amongst the major central banks worldwide.
The Dollar
The dollar index rose 0.3% on Monday for yet another session against a basket of major rivals.
Following mixed US labor data, it's now unlikely for the Federal Reserve to raise interest rates this month, but it's highly likely it'll do so in July.