Oil held a decline as traders weighed the impact of the Federal Reserve's interest-rate cut, alongside warnings of mounting US labor market weakness. West Texas Intermediate held steady at $64.13 a barrel, after falling 0.7% the previous day. Brent closed 0.8% lower on Wednesday, as traders had mostly priced in the 25 basis-point cut ahead of the Fed's decision and unwound hedges against a larger reduction. The decline cooled a three-session rally following concerns over oil flows amid Ukraine's attacks on Russian refineries, while oil markets are expected to face oversupply...
Gold rises in the early Asian session amid prospects of further Fed rate cuts that would bolster the appeal of the non-interest-bearing precious metal. The Fed approved a 25bps rate reduction on Wednesday, with a narrow majority of officials penciling in at least two more cuts this year. "Investors cheered the beginning of the rate cut cycle," ANZ Research analysts say in a research report. However, gold price's gains have been curbed by Fed Chair Powell's remarks that were perceived as less dovish than the market had been expecting, the analysts add. Spot gold is 0.3% higher at...
The U.S. dollar was steady early on Thursday following its plunge to a 3-1/2-year low and then forceful rebound as traders grappled with the ramifications of the Federal Reserve's measured rhetoric on further interest rate cuts. The Fed reduced rates by a quarter point on Wednesday, as expected, and indicated it will steadily lower borrowing costs for the rest of this year, initially sending the dollar plunging. However, Fed Chair Powell characterised the day's policy action as a risk-management cut in response to the weakening labour market, but the central bank does not need to...