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Brent edging closer to $80pb

Brent futures lost 3.30% to $86.04pb on October 5th from $90.68pb on October 4th despite OPEC+ maintaining its output quota. The fall in oil prices is mainly due to demand fears stemming from rising treasury yields in the US. We expect the bearish trend in oil prices to linger as the US Fed hints at increasing interest rates before the year-end. Higher global interest rates will continue to dampen oil demand.

Gold price nears a seven-month low on strong dollar

Gold prices have plummeted by 10% to $1,818.25/troy oz from $2,020.65/troy oz in March. This is the lowest price level in seven months. Gold comes under pressure when the US dollar strengthens. In the past seven months, the greenback has appreciated by 5% against a basket of major currencies, causing a bearish outlook for gold and other precious metals. In the near term, the expectation that interest rates will remain “higher for longer” will remain a major headwind for gold.

These and other burning economic issues were discussed on the Business Morning programme on Channels TV by FDC’s senior analyst Dr. Desola Sunmoni.

Click the link below to watch the video.

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