Oil Rises and Gold Holds Steady Amid Inventory Declines and Growing Political Concerns

Oil prices climbed on the back of declining U.S. stockpiles,

while gold remained stable as markets grew increasingly concerned about political interference

that could undermine the independence of the Federal Reserve.

Topic

Oil

Gold

Oil

Price Increase: West Texas Intermediate (WTI) crude rose 1.3%, settling above $64 per barrel.

U.S. Inventories: Stockpiles at the Cushing, Oklahoma storage hub fell for the first time in eight weeks,

while nationwide crude inventories dropped by 2.4 million barrels—exceeding expectations.

Supply Tightness: The prompt spread for WTI climbed to its highest level in more than a week, signaling tighter supplies.

Global Demand: Fuel demand remains strong despite U.S. tariffs on India,
as Indian refiners continue with their Russian oil purchases.

Production Limits: The International Energy Agency (IEA) warned of a potential record supply glut next year as OPEC+ rolls back production cuts.

Political Stance: U.S. President Donald Trump praised the recent decline in oil prices,

stating that crude could fall below $60 per barrel “very soon.”

Gold

Stable Prices: Gold held steady after two days of gains, trading at $3,391.71 per ounce with a slight dip of 0.2%.

Political Concerns: Markets are uneasy over Trump’s attempt to oust Federal Reserve Governor Lisa Cook,
a move that could undermine monetary policy independence.

Potential Implications: If successful, Trump would secure a majority on the seven-member board,
strengthening his push for interest rate cuts and increasing inflation risks.

Recent Performance: After surpassing the $3,500 per ounce mark in April,
gold has since been trading in a narrow range, awaiting new catalysts.

Other Metals: Silver and palladium remained steady, platinum slipped slightly,
and the Bloomberg Dollar Spot Index edged down 0.1%.

Oil Rises and Gold Holds Steady Amid Inventory Declines and Growing Political Concerns

Oil Rises and Gold Holds Steady Amid Inventory Declines

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