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Weak data from China pins oil prices below $80
Dollar higher up this Monday capping gold gains
US dollar index rises slightly, while precious metal prices decline
Investors anticipate key economic data from the US, including the Federal Reserve meeting and labor market updates
Oil performance under pressure due to potential economic recession fears and manufacturing data showing a decline in activity in China
Gold near $1980
At the beginning of the week, the US dollar index showed a slight increase against major currencies, while companies on Wall Street are revealing their Q1 2023 earnings. In contrast, precious metal prices declined, hovering around $1980 per ounce.
Investors are eagerly anticipating key economic data from the US this week, including the Federal Reserve meeting and labor market updates, with many predicting a 25 basis point increase in interest rates by the Federal Reserve.
Brent pinned below $80
Oil performance remains under pressure due to concerns of a potential economic recession, as investors fear that interest rate hikes by central banks to combat inflation could harm economic growth and demand for oil as they stay further prolonged than previously anticipated.
Manufacturing data released from China yesterday showed a surprising decline in activity, suggesting that the economic recovery may struggle to maintain its strength. As a result, WTI and Brent crude oil prices declined, trading at around $76 and $79.56 per barrel, respectively, at the start of this week's trading.
China’s purchasing managers' index for the manufacturing sector fell from 51.9 points in March to 49.2 points in April, and well below expectations of 51.4 points.
