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Oil prices continued their losses today, Tuesday, and reached their lowest level in two weeks, and gold prices fell for the fourth consecutive session, while the Gulf stock markets recorded a decline due to the developments of the Russian war on Ukraine.
Brent crude futures fell $5.95, or 5.6 percent, to $100.95 a barrel this morning, and US West Texas Intermediate crude fell below $100 for the first time since March 1, and fell $5.49, or 5.3 percent, to $97.52 a barrel. .
“Expectations of positive developments in the ceasefire talks have been reinforced,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
The fire between Russia and Ukraine hopes to ease the (supply) shortage in the global crude market. It also sparked new lockdowns to curb the pandemic
COVID-19 in China concerns about slowing demand.
On the other hand, gold prices fell during today’s trading, and continued to decline for the fourth consecutive session, with the anticipation of the Federal Reserve (US Central Bank) meeting, in addition to following up on negotiations between Russia and Ukraine to stop the war.
Gold futures prices for April delivery fell 1.28%, or $25.10, and traded at $1,935.7 an ounce. And gold prices fell in spot transactions by 0.96%, or $18.65, and recorded $1932.23 an ounce.
The markets are awaiting the Federal Reserve’s meeting tomorrow, Wednesday, to discuss monetary policy in light of the acceleration in the US inflation rate, which is likely to witness an increase in interest rates for the first time since 2018. Investors are also awaiting the results of a fourth round of negotiations between Russia and Ukraine, which started on Monday, In the context of discussing ways to reach a solution to the crisis between the two countries.
Gold is an asset that is hedged against spikes in inflation, geopolitical risks and times of economic crisis and war.
Gulf markets decline
Gulf markets recorded a decline today, tracking the decline in oil prices. The Qatari index topped the losses in the region, down by 1.3%. The Qatar Electricity and Water Company’s share fell 7.3% after the company’s general assembly approved the acquisition of 40% of the capital of Nebras Power Company.
The Dubai index fell 0.5%, with Amlak Finance falling 4.4%. The Abu Dhabi index fell 0.3%, affected by a 0.7% decline in the shares of First Abu Dhabi Bank, the largest bank in the Emirates.
The Saudi index fell 0.2%, and is on its way to extend its losses for the fifth consecutive day.