Gold and Oil Jump on EU Bailout Agreement
Gold and oil prices rose the most in a single day in 3 months. Gold’s 4.4% downtrend was due to investors selling gold to make up for losses in other markets as they fell. Oil prices rose as the world is adjusting to the European Union ban on Iranian oil coming into effect on July 1st.
EuroZone nations agreed to make repayments a bit easier on emergency loans granted, as we see Spanish banks, Italy, Cyprus, and Greece still needing help.
There are other factors contributing to oil’s rise today. Iran is still keeping a hard-line against the West as they announced missile upgrades to their warships. OPEC chose not to raise oil output this month during their recent meeting, which will force prices to rise and demand rises. Norway’s oil workers are still striking, which has shut down 250,000 barrels per day of North Sea Brent oil.
Crude oil August futures rose $7.27 or 9.4% to $84.96 per barrel — the single biggest day in 3 years. However prices are still down 14% this year.
Brent oil August futures rose $6.22 or 6.8% to $97.58 per barrel. However prices are still down 21% since March.
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