According to the U.S. Energy Information Administration (EIA), the country’s crude oil inventories declined to 413.9 million barrels over the previous week. But there was an increase in the U.S. gasoline and distillate stocks.
Businesses in the UK express concerns that their energy costs will double in 2023. In their views, UK energy prices will surge when an emergency package of government support ends.
The People's Bank of China (PoBC) said it had increased its gold reserves by 32 tons, worth about $1.8 billion, for the first time since September 2019.
The Bank of Canada recently increased the rate, and it can bring many problems to housing buyers. They will have to prove that they can pay out the mortgage loan with an interest rate above 8%.
On Wednesday, the exchange rate of Canadian dollar showed the same rates against the U.S. currency. The trend is holding currently near monthly lows as oil prices have already declined and the Bank of Canada is nearing the end of its rate hike cycle.
USDJPY is maintaining bullish momentum, moving above 137. Economists at Brown Brothers Harriman (BBH) believe the currency pair is likely to hit last week's high, held at 140.
Despite the fact that gold prices are below the key level on Thursday, gold's upside potential remains. In view of the increased risks of a recession, concerns are growing among investors, who have become more active in buying gold as a defensive asset.
A weekly close above $1,796 will open the door to a meaningful recovery to a 50% retracement of the 2022 price drop ($1,843). Later, bullion prices will reach a June high of $1877.
According to recent data, gross domestic product of Japan declined over a three-month period to the end of September. The decline turned out to be less than it was expected, as GDP contracted an annualized 0.8% in comparison with the previous period.
Oil rebounded in early Asian trade on Thursday after dipping to this year's low. The drop in oil prices was fuelled by an increase in US factory output and gasoline stocks. At the same time, there are currently more fears that an economic slowdown would dent fuel demand.
