Brent crude posted small gains on Wednesday although the intraday trading even saw price at 112.80 USD per barrel. However, a rebound of the US dollar later in the afternoon as well as a bearish set of data from the US DOE/EIA (which showed a higher than expected built in US crude inventories) weighed on the price and the front-month contract dipped back below 112 USD/bbl level.
The price of oil remains at elevated levels although the situation in Persian Gulf has calmed down somehow. The IAEA said yesterday that the agency’s officials had had a “good talks” with Iranian counterparty during the recent visit to the country. Nevertheless, some issues remained unresolved and further discussions should take place in the meeting scheduled for 21st and 22nd February.
Gold took advantage of the weakening US dollar yesterday and also from the fact that US Equities ended a four-day losing streak on Thursday. Generally, rising stocks prices have been favourable for the price of gold lately. Thus, gold is currently seen at the highest level since the beginning of December last year.