Commodity News: Gold And Oil On The Rise
Commodity News: Gold And Oil On The Rise
Gold fell in the previous two months as a resilient U.S. economy spurred speculation that officials would start tightening monetary policy. As Minneapolis Fed President Narayana Kocherlakota looks for additional ways to lower the interest rates, with many suggesting asset-purchase tools.
Gold is seen as a strong alternative stock to hold during August, as fears that China’s black Monday could effect global growth. The poor performance of the global economy may delay the proposed increased in interest rates by the US. The higher rates curb the appeal of gold because it doesn’t pay interest or offer returns, unlike competing assets.
Although crude is still down 15 percent this year as concern of supply glut remain prevalent , oil futures climbed 6.3%, extending a 10% gain on Thursday which was the biggest in more than six years. The gain in energy futures triggered increases in shares of oil and gas producers. Chevron Corp., the second-largest U.S. energy company, climbed as much as 4.6%.
