Gold and oil prices fell sharply

Closing session 28/3, per ounce yellow The world spot market fell nearly $36 to $1,922 an ounce. Currently, the price is trading around 1,927 USD.

Precious metals depreciated as US bond yields and the US dollar rose. Yields on 10-year bonds yesterday reached their highest level since April 2019, thanks to the expectation that the US Federal Reserve (Fed) will raise interest rates strongly to cope with inflation.

The dollar also gained 0.4% yesterday, making gold more expensive for holders of other currencies. The precious metal’s role as a safe-haven instrument is also under pressure from expectations of peace talks between Russia and Ukraine.

However, Jim Wycoff – senior analyst at Kitco Metals thinks that gold’s decline has been halted because of inflation concerns.

On the market crude oil, prices in the Asian session this morning continued to go down after dropping 7% in the first session of the week. The reason for fear of a resurgence of the pandemic in China is putting pressure on demand.

WTI is now down 1.3% to $105 a barrel. Yesterday, the price of this oil fell 7%. Brent oil also lost 1.7% this morning, to 110.5 USD after falling nearly 7% in the previous session.

China is dealing with its worst outbreak since what happened in Wuhan two years ago. The fast-spreading strain of Omicron is testing the country’s Zero Covid strategy. China is currently the world’s largest oil importer.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies will meet this week to discuss May supply. Previously, the organization signaled that it would keep its current policy, that is, only increase supply. light. The oil market has been volatile in the past month due to Russia’s military campaign in Ukraine and tensions in the Middle East.

Ha Thu (according to Reuters, Bloomberg)