Oil prices rise as demand increases, while gold falls on stronger dollar

Oil prices climbed on Thursday early trade, reversing losses from the previous session after data showed stronger demand in top consuming nations and signs that trade tensions may be easing.

Brent crude futures was up by 0.39% (27 cents), reaching $68.79 per barrel by 00:00 GMT. At the same time, the US West Texas Intermediate crude added 0.47% (31 cents), to $66.69 a barrel. Both benchmarks had dipped by over 0.2% prior session.

In the last week, US stockpiles of crude oil shrank by 3.9 million barrels, dropping to 422.2 million, according to the Energy Information Administration’s reports. That drop far exceeded the forecast of 552k‐barrel draw, hinting at firmer demand and a tight supply.

Still, gains were capped by bigger‐than‐expected increases in diesel and its reserves. Inventories of those fuels rose more than analysts had predicted, limiting the upside in crude prices.

The latest economic snapshot from the US central bank on Wednesday revealed that activity has increased in the last few weeks. Yet the overall outlook has been a bit pessimistic as companies report price pressures due to increasing import tariffs. 

In China, growth in Q2 slowed but not as sharply as feared, partly because companies rushed to buy goods before new U.S. levies took effect. As a result, demand worries reduced in the 2nd largest economy in the world.

Based on data, China’s crude oil output rose by 8.5% in June compared with a year earlier, pointing to stronger fuel consumption.

US President Trump also expressed renewed hope for a deal to curb illegal drug flows from China. He added India was close to making a trade pact with the US, and talks with Europe could soon follow.

Overall, Oil edged up this month, continuing its rally that began in May, despite worries that U.S. tariffs might dampen consumption. Markets remain mindful of a possible supply surplus later in 2025 after summer demand fades and OPEC+ members prepare to resume halted output.

Gold dips against strengthening dollar

Gold prices slipped on Thursday, pulled down by a stronger dollar along with reduced worries after the US President Trump mentioned that he was “highly unlikely” to remove Fed Chair Powell.

A source told Reuters on Wednesday that Trump was considering dismissing Powell, but the president then said he had no immediate plans to do so, while again criticizing the Fed chair for not cutting interest rates.

As of 06:55 GMT, spot gold pulled down by 0.4%, reaching $3,334.19 an ounce. US gold futures also fell, dropping 0.6%, reaching $3,340.30. At the same time, US dollar index increased 0.4% against other currencies, making dollar‑priced gold more costly for holders of other currencies.

Data on US producer prices for June showed no change from the previous month, as higher costs for goods under new import tariffs were balanced by weak services.

Meanwhile on Wednesday, the largest gold ETF, the SPDR Gold Trust, reported an increase in its holdings by 0.33%, reaching 950.79 tons. It increased from the last session’s 947.64 tons.

Elsewhere in precious metals, spot silver eased 0.2% to $37.87 an ounce. On the other hand, Platinum reduced by 0.6% and reached $1,408.85 while Palladium dipped 1.3%, reaching $1,214.53.

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