Extending gains for fifth straight day, Crude oil futures ended higher on Wednesday, with benchmark prices at their highest finish in roughly two weeks after data showed a sharper-than-expected decline in US crude inventories. The Energy Information Administration (EIA) reported that domestic crude supplies fell by 5.8 million barrels for the week ended August 17. Meanwhile, the EIA data also revealed that US crude production climbed by 100,000 barrels to 11 million barrels a day last week.
It’s up by nearly 1.5 million barrels from the same time a year ago. Meanwhile, both grades of crude oil have enjoyed a multi-session streak of gains on anticipated supply concerns as investors have been expecting a series of US sanctions against Iran to eventually remove as many as 1 million to 1.5 million barrels of oil a day from global oil supplies.
Benchmark crude oil futures for October rose $2.02 or 3.1 percent to settle at $67.86 a barrel on the New York Mercantile Exchange. October Brent crude surged $2.15 or 3 percent at $74.78 a barrel on London’s Intercontinental Exchange.
Gold prices rose on the back of a weaker U.S. dollar on Tuesday, extending gains into a third session after U.S. president Donald Trump said he was "not thrilled" with the U.S. Federal Reserve for raising interest rates.
Fundamentals
Spot gold was up 0.3 percent at $1,193.97.24 an ounce at 0054 GMT. It climbed 0.5 percent in the previous session. U.S. gold futures were up 0.5 percent at $1,200.60 an ounce.
The dollar index , which measures the greenback against a basket of six major peers, was down 0.4 percent at 95.494. The dollar was down 0.2 percent at 109.86 yen.
Trump said on Monday he was "not thrilled" with the Federal Reserve under his own appointee, Chairman Jerome Powell, for raising interest rates and said the U.S. central bank should do more to help him to boost the economy.
Asian stocks were capped in the wake of those comments from Trump and after he accused China and Europe of manipulating their currencies.
Gold prices drifted higher in Asian trade on Wednesday, extending gains into a second session, as the U.S. dollar softened against China's yuan and the euro.
Spot gold rose 0.2 percent to $1,213.56 an ounce at 0320 GMT, after rising 0.4 percent in the previous session.
U.S. gold futures were up 0.3 pct at $1221.70 per ounce.
"The dollar-CNH is a bit under pressure this morning and we're seeing some buying on the back of that," a Hong Kong-based trader said.
China's yuan held firm near a one-week high versus the dollar early Wednesday, following firmer equities, extending rise after the central bank last week took steps to curb the currency's decline.
Against a basket of currencies, the dollar eased 0.1 percent as its recent rally on concerns over escalating trade tensions showed signs of fading.
A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies.
Oil prices rose on Tuesday ahead of the introduction of U.S. sanctions against major crude exporter Iran.
Spot Brent crude oil futures were at $73.88 per barrel at 0241 GMT on Tuesday, up 13 cents, or 0.2 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were up 1 cent at $69.02 barrel.
U.S. sanctions against Iran, which shipped out almost 3 million barrels per day (bpd) of crude in July, are set to begin at 12:01 a.m. U.S. Eastern time (0401 GMT) on Tuesday.
"The U.S. seems hell-bent on regime change in Iran," said Greg McKenna, chief market strategist at futures brokerage AxiTrader.
Many countries, including U.S. allies in Europe as well as China and India oppose the introduction of new sanctions, but the U.S. government said it wants as many countries as possible to stop buying Iranian oil.
HEAT IMPACTS OIL
The main oil market price drivers of recent months have been output levels by top producers Russia, Saudi Arabia and the United States, renewed Iran sanctions, the U.S.-China trade dispute, and unplanned supply disruptions. Some analysts warned that a global heat wave could also now affect oil demand.
Gold prices inched higher on Monday, extending their recovery from a 17-month low, amid lingering worries over the U.S.-China trade conflict, while a stronger U.S. dollar capped the safe haven's gains.
Spot gold was up 0.2 percent at $1,215.71 an ounce at 0410 GMT, building on its 0.5 percent gain on Friday.
U.S. gold futures were little changed at $1,223.7 an ounce.
"Gold is still very much being influenced by how the dollar is moving. The uptick in gold prices is from the market pricing in how the U.S-China trade war issues actually play out," OCBC analyst Barnabas Gan said.
Gold prices rebounded on Friday from a 17-month low of $1,204 per ounce as dollar slipped after data showed U.S. job growth slowed in July.
The dollar also weakened against the yuan on Friday after the Chinese central bank sought to stabilize its currency.
The greenback, however, regained footing on Monday and strengthened against major peers
Silver futures were trading higher in the domestic market on Thursday taking positive cues from the global market. Market analysts said a firm trend in precious metals in global market mainly attributed to the rise in silver prices at the futures trade.
At the MCX, silver futures for September 2018 contract closed at Rs 38,000 per kg, up by 0.12 per cent, after opening at Rs 37,975 against a previous close of Rs 37,956. It touched the intra-day high of Rs 38,035.
Gold prices rose on Thursday, recovering from the previous session's fall, as the U.S. dollar edged lower against the Japanese yen.
Spot gold was up 0.3 percent at $1,218.86 an ounce at 0300 GMT, after losing 0.65 percent in the previous session.
U.S. gold futures were nearly unchanged at $1,227.30 an ounce.
"I think people are just watching the dollar. The dollar-yen is down and gold is up," said Yuichi Ikemizu, Tokyo branch manager, ICBC Standard Bank said, adding that the latest headlines on the trade war front between the United States and China had likely induced some buying.
The dollar was down 0.1 percent at 111.62 yen early Thursday. The greenback was, however, supported against major peers after the Federal Reserve kept interest rates steady and gave an upbeat assessment of the world's biggest economy, keeping it on course to increase borrowing costs in September.
A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies while higher interest rates typically pressure gold by increasing the opportunity cost of holding non-yielding bullion.
Cotton textile exporters on Tuesday urged the Goods and Services Tax (GST) Council to allow accumulated "Input Tax Credit" (ITC) on fabrics available with weavers as on July 31 for adjusting GST payment on outward supplies - both domestic and export.
Although the GST Council, on July 26, recommended to allow refund of unutilised ITC to taxpayers in the textiles sector, the notification had, however, also stated that the accumulated credit lying unutilised as on July 31, 2018 will lapse.
"This will lead to serious problems for the textiles sector as the costs will go up on the available stocks as on July 31, 2018," Cotton Textiles Export Promotion Council (TEXPROCIL) Chairman Ujwal Lahoti said in a statement.
According to Lahoti most of the dyes and chemicals, packing materials, fibre and yarn used by the textiles sector attract 12 per cent to 18 per cent GST, whereas the rate on fabrics is only 5 per cent leading to accumulated ITC on account of inverted duty structure.
The "Section 54" of the CGST Act allows "refund of unutilized Input Tax Credit shall be allowed where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies," the statement said.
