GOLD,OIL DOWN SLIGHTLY; AWAITS FED DECISION
Gold is at an eight-week low Friday, seeing its fourth-straight weekly decline as inventors speculate the Federal Reserve will again raise interest rates, which would dampen metal demand and boost the U.S. dollar. This view has been supported by the central bank, which will meet Friday. Spot Gold was at $1,215.39 per ounce at 1340 GMT, little changed from late Thursday. "Expectations for summer rate hikes from the Fed have changed over the past couple of weeks, and looking at that, combined with the dollar being off its lows, equities near the highs, and yields higher, it's a warranted move in Gold," UBS analyst Joni Teves said. "That's especially as you're coming from quite a big build-up in positioning. Last week's [Commodities Futures Trading Commission] data showed that net longs were around 98 percent of the record high."
Oil prices are down slightly Friday, but some expect the two-month upward trend to continue. Supplies have declined about one million barrels per day following some unexpected outages. "The damage we are doing to the non-OPEC supplies is tremendous at this point in time … It is mainly because of all these unplanned outages — Nigeria, in particular, where we are losing nearly 700,000 barrels per day. But even if these unplanned outages do get resolved — unlikely at this stage — the underlying damage to the supply side is tremendous," Energy Aspects co-founder and chief oil analyst Amrita Sen told CNBC Friday. Oil prices recently declined to $49 per barrel and investors want to see prices increase slowly since inventory is high.
At 3:03 P.M. (ET), the APMEX Precious Metals spot prices were:
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