Rise in Gold Price: Gold prices surged strongly during Wednesday’s trading, boosting the precious metal’s early profits.
This rise came amid weakened risk appetite and increasing fears of an economic recession.

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Rise in Oil Prices

Rise in Gold Price

Interest Rate Cut by the Bank of Canada

Rise in Oil Prices

Recent data on U.S. oil inventories indicate a significant drop of about 4 million barrels,
while the average expectations pointed to a decline of only about 2.6 thousand barrels.
According to U.S. Energy Information Administration data, oil inventories decreased by 3.741 million barrels,
while expectations were for a decrease of about 2.6 million barrels.
The previous reading showed a drop of 4.870 million barrels.
As a result, Brent crude prices rose by about 0.8% to reach $81.60 per barrel.
West Texas Intermediate crude prices increased by about 1% to $77.7 per barrel.

Rise in Gold Price

Gold prices surged strongly during Wednesday’s trading, boosting the precious metal’s early profits.
This rise came amid weakened risk appetite and increasing fears of an economic recession.
The upward movement of gold continued in the evening trading after releasing the U.S. Manufacturing PMI data.

Gold has enjoyed strong support as a haven during economic turmoil and volatility.
Data released this morning showed a deterioration in the manufacturing sector in the Eurozone and
a slowdown in activity during the current month,
raising investors’ concerns about the economic conditions in the world’s third-largest economic power.

Interest Rate Cut by the Bank of Canada

The Bank of Canada’s monetary policy committee decided
to cut interest rates by 25 basis points in its meeting held on Wednesday.
This is the second consecutive cut, bringing the primary interest rate down to 4.50%,
which is in line with market expectations for a rate cut by the Bank of Canada in this meeting.

It is worth noting that the Bank of Canada’s interest rate decision
pertains to the overnight lending rate among major financial institutions within the country.
Traders pay significant attention to changes in interest rates,
as short-term interest rates are the primary measure of a currency’s value.
When interest rates rise and exceed expectations, it is considered positive for the Canadian dollar,
while a larger-than-expected drop negatively impacts the Canadian dollar.

Rise in Gold Price

Rise in Gold Price

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