Muscat: The prices of oil and gold experienced a decline in the aftermath of Donald Trump's declaration of victory in the US presidential election.
Gold prices reached a near three-week low on Wednesday, as the strength of the US dollar persisted following Trump's win.
Investors are presently under scrutiny for the forthcoming meeting of the Federal Reserve, seeking insights into potential future monetary policy decisions.
The price of gold decreased by 0.8 percent, settling at $2,721.21 per ounce, a drop from its peak of $2,790.15 observed on Thursday. Similarly, US gold futures saw a decrease of 0.7 percent, settling at $2,730.20 per ounce.
The US dollar achieved its highest value in four months, rendering gold more costly for purchasers who hold currencies other than the US dollar. Traditionally viewed as a safeguard against inflation, gold's appeal diminishes with rising interest rates, as it offers no return.
Oil prices also experienced a drop, falling by nearly 2 percent following Trump's announcement of victory in the US presidential election.
This decline was further exacerbated by the strengthening of the US dollar.
Brent crude futures fell by $1.25, or 1.65 percent, to settle at $74.28 per barrel, while US West Texas Intermediate (WTI) crude futures saw a decrease of $1.25, or 1.74 percent, to $70.74 per barrel.
The US dollar is on course to achieve its largest daily increase against major currencies since March 2020. This strengthening of the dollar renders commodities denominated in dollars, such as oil, more expensive for holders of other currencies.
Market analysts, referencing data from the American Petroleum Institute (API), reported an increase in US crude oil inventories by 3.13 million barrels in the week ending 1 November 2024, exceeding the expected increase of 1.1 million barrels.
Concurrently, oil and gas producers in the US Gulf of Mexico have initiated the process of shutting down operations as Tropical Storm Rafael is anticipated to intensify into a Category 1 hurricane.
