Commodity update news: Gold, Silver and Oil Drop Overnight

Commodity update news: In overnight trading, gold and silver prices fell as market pressures mounted, with both precious metals reversing earlier gains. Gold retreated from recent highs, while silver also saw declines from its 12-year peak. Meanwhile, oil prices dropped amid increasing crude stockpiles, signaling concerns about weakening demand in the domestic market.

GOLD and SILVER sank from another record

Gold and silver experienced declines on Wednesday afternoon in London, with gold dropping from its recent record high and silver retreating from a new 12-year peak. This drop coincided with a downturn in Western stock markets, reversing earlier gains made this week, as the US dollar continued to strengthen and long-term US interest rates rose, even in the face of disappointing economic data from the world’s largest economy.

The Energy Information Administration reported a significant increase in crude oil stockpiles, despite a decline in imports and slowing gasoline production, indicating weak domestic industrial and driving demand.

The price of silver bullion then fixed above $34.50 per Troy ounce at midday, its highest London benchmark since early October 2012.

With gold in Dollars briefly dipping through $2710 – a new record high when reached Thursday last week – the UK gold price in Pounds per ounce spiked down through £2100 and Euro gold fell through €2520 before both recovered 1/4 of today's 1.8% plunge.

Crude oil prices fell after the EIA stockpiles data

For the first time since the very start of the month, the cost of a barrel of the benchmark oil Brent crude is below $72 at $71.93.

The oil price stood at $76 on Friday evening, before Monday morning's fall of more than 5%.

It means the cost of oil is cheaper than it has been for the vast majority of the past two years.

Crude oil prices declined following the latest data from the Energy Information Administration (EIA), which reported a significant increase in stockpiles. This rise in inventory raised concerns about oversupply and weak demand in the domestic market. Despite a decrease in imports and slowing gasoline production, the growing stockpiles suggest a lack of robust industrial and driving demand, contributing to the downward pressure on oil prices. Investors are closely watching these trends for further implications.

The price of oil affects the cost of filling up with petrol or diesel, and this typically translates to changes at the pump within about 10 days.

This comes amid signs that the risk of further escalation in the Middle East is diminishing. While Iran and Israel have been engaged in missile exchanges, recent remarks from Iranian leader Ayatollah Ali Khamenei did not include direct threats toward Israel during a speech on Saturday.

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