Oil on fire after Aramco attacks, bulls go astray, gold and dollar sparkle by Investing.com

Investing.com – Yesterday’s terrorist attacks in Saudi Arabia cast a shadow over oil prices, further fueling markets.

As he continued to search for the bulls, however, they had so far lost their way to acquiring the precious metal, as the dollar continued to shine in defiance of the stimulus package.

During those times, U.S. WTI crude hit record highs, hitting its highest level in 30 months, as it hit May 2019 levels.

Unlike its highest level since November 2020, when the yellow metal fell to its lowest level since May 2020.

On Sunday, the Kingdom of Saudi Arabia said one of the oil yards in the port of Ras Tanura and a residential area of ​​Dhahran, affiliated with Aramco, had responded to two terrorist attacks.

National oil company Saudi Aramco (SE 🙂 said on Sunday it had raised the official selling price of its Arab Light crude to Asia in April.

While OPEC + producers agreed to extend the production cut agreement, which raised hopes of a further recovery in oil prices, which have improved recently, coinciding with the decision of the Kingdom to voluntarily reduce its production last February.

During those times, the price of US NYMEX light crude hit its highest level in two and a half years, reaching levels of $ 67.98 per barrel, up nearly 2%.

While the price of a barrel of Brent has risen near its highest level since May 2019, reaching a price of $ 71.38 per barrel.

On the other hand, it seems that the stimulus package that would further strengthen the hedge against the effects of inflation resulting from the approval of one of the most important stimulus packages for the US economy, has failed. gave gold the necessary stimulus.

After slight increases in early Asian trade, gold fell back to its lowest level since May 2020.

The price of gold per ounce fell to levels of $ 1,694 per ounce, a decline of about 0.3%, after rising early in the session to levels of $ 1,712.

Margaret Yangg, a strategic expert at DailyFX, had expected sentiment to improve following the passage of the stimulus package in the United States and the weaker dollar would help.

“Inflation will definitely go up” because of the rise in base metals, Yang added, adding that some individual checks could also be allocated to investments in gold traded funds to hedge against future inflation.

The yield on ten-year US bonds, which fell from a one-year high on Friday, also gave the yellow metal a boost.

“Gold fell on happy economic optimism about a strong economic recovery and faster-than-expected increases in bond yields,” Stephen Innes, senior global market analyst at Axi, said in a note.

Unlike the declines in gold, the surprises in the dollar continued, which rose near its highest level in almost 4 months.

It rose during these times to 92.2 levels against the performance of a basket of 6 major currencies, and the dollar’s rise was supported by the dollar’s rise against the yen and pound sterling.