Commodity markets traded mixed on October 19 as oil prices slipped and gold prices rose. Crude oil fell because of expected Russian fuel exports. Meanwhile, gold prices got a boost as traders scaled back bets on a Federal Reserve interest rate hike. Silver fell while the dollar stayed steady against the euro.
Commodity markets traded mixed on October 19, with crude oil prices slipping on expectations of increased Russian fuel exports, while, gold prices opened the week higher as traders scaled back bets on a Federal Reserve interest rate hike this month. Oil prices slipped on Monday after US President Donald Trump waived sanctions and tariffs on Russia that may lead to more Russian fuel exports. Brent crude futures fell $1.43, or 1.30%, to $108.43 a barrel after settling at its highest since May 19 on Friday. US West Texas Intermediate crude was at $100.88 a barrel, down 53 cents, or 0.52%. Gold opened the week higher as traders pared bets on the Federal Reserve raising interest rates this month after remarks by Chair Kevin Warsh. Bullion was trading around $4,180 an ounce, after falling 0.7% the week before. Traders unwound bets on the probability of a quarter-point hike to less than one-in-five after comments by the Fed chair were interpreted as supporting the case to keep rates on hold when it meets next week. Higher borrowing costs are a headwind for gold, which doesn't pay interest. Among other precious metals, silver fell 0.4% to $57.13. Platinum and palladium declined. The dollar edged up from near its lowest levels of the month at the start of trading in Asia on Monday as violent protests in France put pressure on the euro. The euro fell 0.1% at $1.1225 as trading began in Asia. The biggest weighting in the dollar index, the common currency's drop helped steady the greenback, which traded level at 101.83.