On July 21, local time, with increasing risk appetite, oil prices continued to rise on the second trading day, although data showed that US crude oil inventories suddenly increased last week, and global fuel demand is expected to be frustrated due to the new crown epidemic . On the other hand, the price of gold fell.
At 08:40 GMT on the same day, Brent crude oil futures rose 84 cents (1.2%) to US$70.19 per barrel, which means an increase, and fell to US$68.63 per barrel during the session; US West Texas Intermediate crude oil Futures rose 84 cents (1.3%) to US$68.04 per barrel, and earlier in the day, the price fell to US$66.44 per barrel.
Ricardo Ivangelista, an analyst from Active Trades, said, “As risk appetite grows again, oil prices seem to have found support.”
However, after this support, a sharp drop in prices has been recorded in the past few trading days. This is due to market concerns about the impact of the delta mutant strain. In addition, the “OPEC+” alliance agreed to increase production also made the market feel Worry.
The “OPEC+” alliance-the Organization of the Petroleum Exporting Countries and its allies-agreed to increase the supply of crude oil by 400,000 barrels per day from August to December this year. After that, oil prices fell on the 19th. On the other hand, due to concerns The rapid spread of the delta mutant strain of the new coronavirus will affect the demand in major markets such as the United States, the United Kingdom and Japan, and the decline in oil prices will further intensify.
Gold prices fall
The price of gold fell for the second consecutive trading day on the 21st, because under the worries caused by the rapid spread of the delta mutant strain, the rise of the dollar and the recovery of U.S. Treasury yields overwhelmed the attractiveness of gold as a safe haven for funds.
As of 08:55 GMT, the spot price of gold fell 0.2% to US$1,805.81 per ounce, while the price of US gold futures fell 0.3% to US$1,805.50 per ounce.
Michael Hewson, chief market analyst from “CMC Markets uk”, said that U.S. Treasury yields seem to have slightly strengthened, while European stock markets also seem to be a better choice, thus taking away the brilliance of gold.
The U.S. dollar is approaching its highest level during the year, and the yield on Treasury bonds that day continues to rise. The rapid spread of the delta mutant strain has replaced inflation and has become the most concerned issue for investors. The benchmark U.S. Treasury bond yield rebounded after hitting its lowest level in more than five months on the previous day.
European stock markets rose before the European Central Bank meeting scheduled for the 22nd, which is expected to determine the tone of monetary easing.
In terms of other precious metals, the price of silver rose 1.1% to US$25.17 per ounce, the price of palladium rose 1.2% to US$2,665.58 per ounce, and the price of platinum rose 0.7% to US$1,073.21 per ounce.