Oil expands gains after Trump's move against Venezuela
Oil prices rose on Thursday and expanded the gains amid renewed concerns about global supply disruptions as Trump revoked Chevron’s licence in Venezuela.
US President Donald Trump stated on the Truth Social platform that his administration removed a licence given by the previous administration two years ago to Chevron to work in Venezuela.
Also Reuters reports that OPEC+ is considering an oil production hike in April as it continues to assess the status of global supplies with ongoing US sanctions on Venezuela, Iran, and Russia.
On trading, Brent April futures rose 2.1%, or $1.51 to $74.04 a barrel.
US crude futures due in April rose 2.5%, or $1.73 to $70.35 a barrel.
Gold declines to three-week trough
Gold prices fell on Thursday to February 7 lows as the dollar surges against most major rivals following data.
Earlier data showed US GDP growth rose 2.3% on a quarterly basis in the fourth quarter, compared to a 3.1% rise in the third quarter.
US unemployment claims rose by 22 thousand to a three-month high at 242 thousand last week, beating estimates of 222.5 thousand.
US President Donald Trump announced that the 25% tariffs on Mexican and Canadian commodities will be enforced in early March.
On trading, the dollar index rose 0.8% as of 20:55 GMT to 107.2, with a session-high at 107.2, and a low at 106.5.
On trading, gold spot prices fell 1.6% as of 21:00 GMT to $2884.2 an ounce.
US dollar extends gains after positive data
The US dollar rose against most major rivals on Thursday, extending the gains after positive data.
Earlier data showed US GDP growth rose 2.3% on a quarterly basis in the fourth quarter, compared to a 3.1% rise in the third quarter.
US unemployment claims rose by 22 thousand to a three-month high at 242 thousand last week, beating estimates of 222.5 thousand.
US President Donald Trump announced that the 25% tariffs on Mexican and Canadian commodities will be enforced in early March.
On trading, the dollar index rose 0.8% as of 20:55 GMT to 107.2, with a session-high at 107.2, and a low at 106.5.
Loonie
The Canadian dollar fell 0.7% as of 21:06 GMT to 0.6922.
Aussie
The Australian dollar fell 1.1% against its US counterpart as of 21:06 GMT to 0.6235.
Gold skids to two-week trough as dollar gains ground
Gold prices skidded in European trade on Thursday to two-week lows away from the psychological barrier of $2900 amid ongoing profit-taking, while the dollar gained ground against major rivals.
The odds of a Fed interest rate cut in March fell sharply, with investors now waiting for crucial US GDP growth and unemployment claims data to gather more clues.
Prices
Gold prices fell 1.35% to $2877 an ounce, the lowest since February 12, down from the opening of $2916.
On Wednesday, gold rose 0.1% after a 1.9% drop on Tuesday, marking the largest loss in two weeks on profit-taking away from a record high at $2956.
The Dollar
The dollar rose 0.25% on Tuesday against a basket of major rivals, making greenback-denominated gold futures costlier to holders of other currencies.
As Trump prepares to impose tariffs on Mexico and Canada, while threatening the EU and other countries with additional tariffs, inflationary concerns are mounting on the Federal Reserve, with interest rates likely remaining at current levels for an extended duration.
US Rates
According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in March stood at just 2.5%.
Now traders await crucial US GDP growth and unemployment claims data today, in addition to remarks by several Fed officials on the future of the battle with inflation and monetary policies.
SPDR
Gold holdings at the SPDR Gold Trust fell 0.86 tons yesterday to a total of 906.96 tons, away from August 2023 highs at 907.82 tons.