Gold and Oil witnessed a rally in prices at the end of the week ,west Texas Intermediate crude oil prices increased by 2% since the beginning of the week, while Brent crude oil prices increased by 1.3%. Oil prices rose in Asian trading on Friday, April 14th, following a 1% drop in the previous session. Futures contracts for both Brent and West Texas Intermediate crude oil increased by 17 cents to reach $86.26 per barrel, or 0.2%, and by 20 cents to reach $82.36 per barrel, or 0.2%, respectively.

Oil prices were supported by expectations of a supply shortage, as a decrease in expected production in Russia is likely to occur. Investors are focused on the monthly oil market report issued by the International Energy Agency (IEA), and the possibility that the agency may reduce its global demand forecast due to various issues, such as inflation, recession, and the general economic growth impediments.

It is worth mentioning that the monthly report of the Organization of the Petroleum Exporting Countries (OPEC+), which was released on Thursday, April 13th, indicated the risks of a decline in oil demand next summer due to weak growth, in addition to tight monetary policy and market stability commitments.

The slightly higher prices today, Friday, April 14th, at the end of the week, came as Brent and West Texas Intermediate crude oil reached their highest levels in over two months, thanks to data showing a slowdown in US inflation and a weakened dollar. It is noteworthy that a weaker dollar makes oil cheaper for investors due to its valuation in US dollars.

Gold spike

Gold prices rose on Friday, April 14th, with the precious metal increasing by 0.2% to $2044.09 per ounce. Gold is expected to register gains for the second consecutive week, especially after the US dollar weakened and economic data was released indicating that the US Federal Reserve is nearing the end of its monetary tightening policy and interest rate hikes. It is worth noting that the decline in the dollar has made gold cheaper for investors.

Impactful Data

With the release of influential data on the US producer price index, which revealed the largest drop in the index in March since April 2020, and the consumer price index rising at a slower pace than expected, these results, along with concerns of a looming economic downturn, helped push up gold prices. Gold is considered a primary safe haven against inflation and economic uncertainty.

Other metals prices

Silver witnessed an increase in spot transactions by 1% to $26.04 per ounce, hitting a yearly peak. Platinum increased by 0.8% to $1,055.14, while palladium rose by 0.6% to $1,508.57.

Investors are awaiting several economic events today that could change some numbers and market movements, such as the results of core retail sales for March and the export price index.