The sharp decline in the market last week recorded the biggest weekly drop in oil prices since 2020 following the US mass production move on its oil reserves.
The move was also joined by members of the International Energy Agency (IEA) after US President Joe Biden announced the move on Thursday, pushing oil prices down to 7%.
Biden announced oil emissions of up to 1 million barrels a day for a period of 6 months starting May, making a total of 180 million barrels the largest emissions by the US Strategic Petroleum Reserve (EC).
Meanwhile, petroleum-exporting countries (OPEC) along with allies including Russia, were stuck with plans to increase production to 432,000 barrels a day in May, following pressure by unrest in the West.
Developments for the yellow metal commodity, meanwhile, the price of gold had registered a decline last Friday after the market reaction to the NFP employment data report was slightly supportive of the strengthening US dollar.
The decline in gold prices continued at the opening at the beginning of this week's trading session reaching a level of around $ 1,915 at the end of the Asian session.
The increase in US 10-year treasury yields also had the effect of influencing the decline in investor attraction to gold.
Commodity market analysts also believe, expectations of a continued interest rate hike by the Federal Reserve (Fed) will complicate the rise of gold with the pressure of a strengthening US dollar in the market.
Nevertheless, it is not impossible for gold to still gain traction due to the conflict between Russia and Ukraine which is still at risk.
Re -ignited tensions could trigger a resurgence in the precious yellow metal trade.
