Gold Is Shining But Oil Is Turbulent Because Of China & Russia


 Market sentiment is now considered mixed with China reporting the availability of ending the Covid-19 zero policy but Russia on the other hand is about to start a nuclear war.

It made the greenback index shrink before reversing the losses, which was also seen to affect the trading of the world's 2 main commodities.

The XAU/USD chart saw gold manage to record its biggest daily gain in a week with the decline of the greenback, influenced by the news in China before the bearish momentum was tested with negative news from Russia.

For now gold is hovering back at $1,783 as the yield of the United States Treasury (US) declines and fears of weak global economic growth make investors look for safe-haven assets.

On the other hand, oil prices continued to slide to hit their lowest levels of the year as they reversed all gains since Russia's invasion of Ukraine.

Brent futures were down 2.8% at $77.17 a barrel while West Texas Intermediate (WTI) crude futures were down $2.24 at $72.01 a barrel.

The decline occurred with weak global growth factors, due to high energy costs although there was good news from the China region which saw imports from the country rise 12% in November.

In addition, the decision of the Group of 7 (G7) to impose limits on Russian oil exports also worsened the situation as Moscow planned to block its sales in protest against the move.

Concerns about the matter indirectly upset investors and Rystad Energy's Senior Vice President, Claudio Galimberti, did not rule out the possibility that the uncertainty would tarnish buying interest.