Dhaka, Bangladesh (BBN) - Gold price maintained an upward trend continuously and reached at around US$2,505 during the early Asian session on Monday, bolstered by rising expectations that the US Federal Reserve might cut interest rates in September.
Investors are eagerly awaiting key economic indicators, including the first reading of the US S&P Global Purchasing Managers Index (PMI) and a speech from Fed Chair Jerome Powell later this week, which could provide further direction for the precious metal.
On Friday, gold prices surged to an all-time high as the market increased bets on a September rate cut by the Fed.
On the other hand, oil prices experienced a decline of approximately 2.0 per cent at the close of trading on Friday, with brent crude dropping below US$80 per barrel.
Brent crude futures dropped 13 cents, or 0.2 per cent, to $79.55 per barrel by 0032 GMT. US West Texas Intermediate crude futures slid 13 cents, or 0.2 per cent, to $76.52 a barrel.
The decline in oil prices was influenced by lower expectations for demand growth from China, the world's largest oil importer. Recent data from China indicated a slowdown in economic activity in July, with new home prices dropping at their fastest rate in nine years, slower industrial production, and a rising unemployment rate.
This has heightened concerns about reduced oil demand as Chinese refineries significantly cut crude throughput due to decreased fuel consumption, according to global media report.
Besides, both OPEC and the International Energy Agency (IEA) have adjusted their forecasts downward, citing weak demand prospects in China.
Despite a brief rise in oil prices earlier in the week due to speculation over potential Iranian retaliation following the assassination of Hamas leader Ismail Haniyeh, the market remains cautious. Ongoing ceasefire talks in Gaza, which began in Qatar, will be paused until next week, adding further uncertainty to the global oil market.
BBN/SSR/AD