The direction of the U.S. economy has changed with President Joe Biden and House Speaker Kevin McCarthy reaching a tentative agreement on the borrowing limit.
Oil prices rose in Asian trading on Monday as the world's largest oil consumer reached a deal to avert a default on its national debt. West Texas Intermediate futures maturing in July were trading over 1% higher at $73.42 per barrel at the time of writing. The United States Brent Oil Fund BNO rose 1.21% on Friday as the Vanguard Energy Index Fund ETF VDE lost 0.42%, according to Benzinga Pro.
Oil's price rise comes after a sluggish week when prices fell after Russia's Deputy Prime Minister Alexander Novak said OPEC wasn't likely to take further measures at its Vienna meeting in June.
The remarks were in contrast to warnings from Saudi energy minister Prince Abdulaziz bin Salman's earlier warnings. I keep advising them that they will be ouching - they did ouch in April, he said at the Qatar Economic Forum in Doha. He said that he was disappointed to see his comments sparked such a backlash. The OPEC alliance will meet in Vienna on June 3 - 4.
However, the debt ceiling deal did not augur well for bullion prices as the commodity's safe haven status took a back seat with the crisis getting closer to resolution. On Monday, spot gold was down 0.11% in Asia trade, at levels close to $1,944 per ounce.
In a research note released Thursday, analysts from Guotai Junan Securities said gold will likely continue to fall if the Biden-McCarthy debt-ceiling deal is approved by both houses of Congress before the X-date.
On Friday, the iShares Gold Trust GLD rose 0.4% and the SPDR Gold Trust IAU rose 0.44%.
The Fed's Goolsbee believes inflation still higher than where it needs to be - we are improving Haven t Succeeded.