Oil Trading Up, Gold Down as India’s Seasonal Buying Ends

ShareCast reported that oil benchmarks began trading marginally up in Asia on Tuesday, while gold took a dip following the end of India’s seasonal gold buying season.

As quoted in the market news:

In subdued trading after public holidays in the US and most of Europe on Monday, at 07:32 BST the Brent front month futures contract was trading up six cents or 0.09 percent at $65.58 per barrel, while the WTI was up 16 cents or 0.27 percent at $59.88.

The crude oil market would be looking at key data this week to chart its course. The US durable goods orders figures are due later on Tuesday, with oil stockpiles data on Wednesday, followed by the second reading of US first quarter gross domestic product (GDP) on Friday.

Meanwhile, the gold markets were back in tenuous territory with the end of Indian seasonal buying and a stronger dollar hitting investor sentiment. Traders in Mumbai reported that Indian gold imports had fallen from an average of 67 tonnes in the week ended 21 April, to an average of six tonnes for the week ended May 22.

The news coupled with a stronger dollar sent gold prices lower overnight, with trading sources in Dubai putting gold resistance at $1,230 an ounce with support around $1,160 in a call to Sharecast. COMEX gold for August delivery was trading down $4.70 or 0.40 percent at $1,200.20 an ounce, while spot gold fell to $1,196 an ounce – down over $10 or 0.84 percent.

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