Gold and Oil Prices Decline on Brexit fears

On Thursday in Asia, as uncertainties around Brexit and Sino-U.S. trade talks continue, the U.S. dollar strengthened while Gold prices weakened.

Hqbroker- Gold prices plunged

After trading on the Comex division of the New York Mercantile Exchange, Gold Futures were down 0.1% to $1,316.25 per ounce. On the other hand, the U.S. Dollar Index was high on its two-week peak.

Dollar-dominated gold are much more expensive as dollar rises for owners of other currencies.

On Wednesday, the Prime Minister of the United Kingdom, Theresa May, announced that if dilemma on Brexit continues supporting the greenback, she will resign if Parliament hand in her twice-rejected withdrawal deal.

A third vote to Parliament is expected in the coming days from May as suggested by several media, despite the fact on admitting she needs backing from her Brexit deal to such vote.

The deadline of the agreement on Brexit is up until April 12 only and needs an approval from the European Union. The deal would decide whether the UK would quit or they will request a prolonged extension.

Further updates are observed by traders on the Sino-U.S. trade front, as a new round of trade talks is about to begin with officials gathering in Beijing.

Today, gold prices had a bit of impact even if the U.S. yield curve inversion received some residual focus.

Last week, an indication of an upcoming recession was foreseen, because for the first time since 2007, the U.S. 10-year Treasury yield plunged lower than the three-month bill.

A weaker economic data and decline in the US economy was seen by the Federal Reserve. This was also the case for other key economies.

In other news, losses were extended as oil prices were down on Thursday, following a kick on US crude inventories. 

Hqbroker- Oil prices dropped

The Organization of the Petroleum Exporting Countries and non-affiliated allies like Russia, known as OPEC+, attempted to prop up prices by curbing output. Venezuelan output also experienced a drop down.

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Categories: Commodities

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