Commodities in Focus: Oil Slumps Over 7%, Gold Continues Rally

Hello traders, welcome to Tuesday’s market session. After a quiet day on Monday due to Columbus Day, the markets are back in action today with some key data releases already moving the market.

This morning, we saw the UK’s Claimant Count Change report, which showed a higher number than expected, indicating a weaker labor market. However, the British pound remains resilient and has shrugged off this negative data. It is currently performing well against its peers. Later in the day, we expect inflation data from Canada, where values are anticipated to remain unchanged from the previous month. New Zealand’s inflation data will also be released late today, with expectations pointing to a rise to 0.7%, which will likely impact the New Zealand dollar.

On the currency market, aside from the British pound’s strength, the Japanese yen is leading gains today, signaling a reversal in safe-haven assets. On the weaker side, the Australian dollar and New Zealand dollar are struggling, with both currencies remaining among the weakest performers over the last 10 days.

Moving to the indices, European markets are trading lower today after a strong session in the US on Monday. American futures are showing signs of a correction following yesterday’s gains, which is putting pressure on European indices, already vulnerable to broader economic concerns.

Lastly, commodities are seeing a significant divergence in performance. Oil is having a rough start to the week, down over 4% today, adding to yesterday’s losses, with oil prices down nearly 7% so far this week. On the other hand, gold is maintaining its strength, continuing to rise as a safe-haven asset. Other precious metals like copper, palladium, and platinum are seeing bearish corrections.

Source: https://www.axiory.com/analytics/market-news/commodities-in-focus-oil-slumps-over-7-gold-contin