Oil holds ground above 3-week low amid Taiwan tensions
Oil prices rose in European trade for the first time in three sessions, holding above three-week lows amid rising geopolitical tensions in Taiwan.
Markets also await tomorrow's OPEC + meeting, which will include Russia, to decide their output in September.
Oil Prices
US crude rose 1.5% to $95.13 a barrel, while Brent climbed 1.4% to $101.12 a barrel off July 15 lows at $98.54.
US crude lost 4.3% yesterday, marking three-week lows at $92.44, while Brent shed 3.5% on global demand concerns.
Taiwan Tensions
US officials prepare to visit Taiwan today in an official visit, amid strong opposition by Chinese authorities and US attempts to calm Chinese nerves.
However a deliberately obtuse stance by the US on Taiwan makes it more difficult to ascertain the true purpose of the visit.
China responded by imposing new tariffs on Taiwanese goods, with several Chinese military aeroplanes flying near Taiwanese borders.
OPEC Plus
Tomorrow, OPEC Plus will hold its monthly meeting that includes Russia to decide September quotas, with many analysts expecting no change.
Gold climbs to four-week high as US yields drop
Gold prices rose in European trade for the fifth straight session, marking four-week highs as US treasury yields decline.
Haven demand is climbing on the precious metal as geopolitical tensions with Taiwan increase ahead of a visit by US officials to the island.
Prices Today
Gold prices rose 0.5% to $1,780 an ounce, the highest since July 5, with a session-low at $1,768, after rising 0.35% on Monday, the fourth profit in a row as dollar slides.
US Yields
US 10-year treasury yields declined 2.3% today for the fifth straight session, marking four-month lows at 2.516%.
Such developments came as traders now expect a more bearish pace by the Fed in tightening policies as the US economy faces recession.
Taiwan Tensions
US officials prepare to visit Taiwan today in an official visit, amid strong opposition by Chinese authorities and US attempts to calm Chinese nerves.
However a deliberately obtuse stance by the US on Taiwan makes it more difficult to ascertain the true purpose of the visit.
China responded by imposing new tariffs on Taiwanese goods, with several Chinese military aeroplanes flying near Taiwanese borders.
The SPDR
Gold holdings at the SPDR Gold Trust remained flat yesterday at 1,005 tones.
Yen hits two-month high as bond yields plummet
Yen rose in European trade against dollar for the fifth straight session, marking two-month highs as US bond yields tumble.
Haven demand is surging on yen as well amid mounting geopolitical tensions around Taiwan ahead of a visit by US officials and Chinese opposition.
USD/JPY fell over 1% to 130.39, the lowest since June 3, after rising 1.2% yesterday, the fourth profit in a row.
US Yields
US 10-year bond yields fell 2.3% on Tuesday on track for the fifth loss in a row, marking four-week lows at 2.516%.
A weaker dollar naturally underpin yen's strong gains as the yield gap widens between Japan and the US.
Traders now expect a more bearish pace by the Fed in tightening policies as the US economy faces recession.
Taiwan Tensions
US officials prepare to visit Taiwan today in an official visit, amid strong opposition by Chinese authorities and US attempts to calm Chinese nerves.
However a deliberately obtuse stance by the US on Taiwan makes it more difficult to ascertain the true purpose of the visit.
China responded by imposing new tariffs on Taiwanese goods, with several Chinese military aeroplanes flying near Taiwanese borders.
Estimates
Analysts now expect yen to move higher against dollar, potentially breaking the 130 barrier and hitting multi-month highs.