Oil prices rose in European trade away from 10-month lows while on track for the first profit in the last five days as OPEC+ refuted reports of an increase of 500 thousand bpd in output.
Prices were also buoyed by a weaker dollar against a basket of major rivals, while traders expect later US data to show a drawdown in US crude stocks.
Global Oil Prices
US crude rose 1.8% to $81.71 a barrel, while Brent rose 1.75% to $89.16 a barrel, with a session-low at $87.40.
US crude lost 0.1% on Monday, hitting ten-month lows at $75.30, while Brent fell 0.25% to $82.38 a barrel, the lowest since January.
OPEC + Output
The Wall Street Journal released a report that OPEC + might increase output by 500 thousand bpd.
Saudi Arabia ruled out such an increase and asserted the current 2 million bpd cut in production will continue until the end of 2023.
The Dollar
The dollar index fell 0.4% on Tuesday away from two-week highs at 107.99, and on track for the first loss in four days on active profit-taking.
A weaker dollar underpins commodity and mineral prices as they become cheaper to holders of other currencies.
Dollar fell in European trade against a basket of major rivals off two-week highs on track for the first weekly loss in four on active profit-taking.
The losses come ahead of new important speeches by Fed officials later today, which will provide clues on the future of monetary policies in the US.
The Dollar Index
The dollar index fell 0.4% to 107.27, with a session-high at 107.75, after closing up 0.8% yesterday, the third profit in a row, hitting two-week highs at 107.99.
Fed Remarks
San Francisco Fed President Mary Dale said yesterday the actual impact of higher interest rates will be deeper than the short-term targets.
Cleveland Fed President Loretta Mister said the Fed might turn to smaller rate hikes starting next month to adjust with inflation rates.
Fed Minutes
The Federal Reserve is releasing the minutes of the November 1-2 meeting, at which it hiked rates by 75 basis points for the fourth time in a row to 4%.
The minutes will help determine the tempo of upcoming rate hikes, especially at the December 13-14 meeting.
Gold prices rose in European trade on Tuesday for the first session in five, holding above two-week lows as the dollar slows down against major rivals.
Dollar is stalling ahead of important remarks by Fed officials later today, and the release of the Federal Reserve's meeting minutes, which will provide crucial clues on the pace of rate hikes in December.
Gold Prices Today
Gold prices rose 0.5% to $1,746 an ounce, after closing down 0.75% on Monday, the fourth loss in a row, plumbing two-week lows at $1,732 as dollar climbed and Chinese demand dropped.
The Dollar
The dollar index fell 0.3% today away from two-week highs at 107.99 on track for the first loss in four sessions against a basket of major rivals.
Dollar is also slowing down on profit-taking ahead of important Fed remarks later today that might provide clues on the future of monetary policies.
Fed Remarks
San Francisco Fed President Mary Dale said yesterday the actual impact of higher interest rates will be deeper than the short-term targets.
Cleveland Fed President Loretta Mister said the Fed might turn to smaller rate hikes starting next month to adjust with inflation rates.
Fed Minutes
The Federal Reserve is releasing the minutes of the November 1-2 meeting, at which it hiked rates by 75 basis points for the fourth time in a row to 4%.
The SPDR
Gold holdings at the SPDR Gold Trust rose 1.44 tones yesterday to a total of 906.06 tones.
Euro rose in European trade against dollar, holding above two-week lows and on track for the first profit in four days, however, gains remain limited.
The cautious gains come amid grim outlook for European services and manufacturing, which could hamper the ECB's efforts of raising interest rates rapidly.
EUR/USD rose 0.25% to 1.0268, with a session-low at 1.0238, after closing down 0.8% yesterday, the third loss in a row, plumbing two-week lows at 1.0222.
The recent losing wave for the euro come on profit-taking off three-month highs while the dollar surges following bullish remarks from Fed officials.
Grim Outlook
The euro zone's manufacturing and services PMIs are expected to show a decline this week, in turn impacting monetary policies in the region.
Such decline if happened could force the ECB to slow down the pace of interest rates hikes at upcoming meetings.