Crude Oil
Oil prices shot up on Wednesday after the U.S. said it would join its European allies and slapped fresh sanctions on Russia on accusation of meddling in the Ukraine conflict, which stoked fears a ceasefire could end and allow fighting to disrupt crude supply. Crude rises as U.S. slaps fresh sanctions on Russia Crude spikes as U.S. move to sanction Russia sparks supply concerns U.S. President Barack Obama said earlier Washington will join the European Union and slap fresh sanctions on Russia, accusing it of meddling in neighbor Ukraine's internal conflict. Sanctions will target Russia’s financial, energy, and defense sectors and will take effect on Friday, when further details will be released. The move, which stoked fears of conflict-related supply disruptions from Russia if the move ends a ceasefire, offset bearish data. Earlier Thursday, the International Energy Agency lowered its forecast for oil demand growth this year for the third month in a row, calling the recent slowdown in demand.
Gold
Gold prices slipped on Thursday as investors avoided the yellow metal ahead of the Federal Reserve's statement on monetary policy meeting next week, which many bet will see further cuts to the U.S. central bank's monthly bond-buying program. Gold dips as Fed meeting draws closer Gold slides as market preps for end of ultra-loose U.S. monetary policy. Gold extended multi-session losses on expectations for the Federal Reserve to wind down its bond-buying program in October and hike interest rates in 2015, likely sooner than later. Loose monetary policies such as stimulus programs bolster gold due to its appeal as a hedge to a weaker dollar, while talk of tightening has the opposite effect. The Fed is widely seen cutting its monthly bond-buying program by $10 billion to $15 billion at its Sept. 16-17 meeting before possibly closing it in October.
