Crude Oil
Crude prices edged higher on Wednesday on the coattails of upbeat U.S. inventory data, though concerns the world is awash in oil at a time when global demand remains soft sent futures dipping into negative territory at times. Crude gains on bullish U.S. data, though global supply concerns Crude gains on bullish U.S. stockpile report though gains remain limited on supply concerns. The Department of Energy reported earlier that crude stockpiles plunged by 4.3 million barrels last week, confounding market calls for a build of 386,000. Also on Wednesday the Census Bureau reported that U.S. new home sales data rose 18.0% last month to 504,000 units, far surpassing expectations for a 4.4% gain to 430,000 units. New home sales for July were revised to a 1.9% increase from a previously estimated 2.4% drop.
The data came a day after a report showed that the U.S. manufacturing sector expanded in September close to market expectations.
Gold
Gold futures fell on Wednesday after the greenback advanced on news that far more new homes were sold in the U.S. last month than expected. Gold falls as dollar gains on upbeat U.S. housing data Gold falls as upbeat U.S. home sales point to end of loose monetary policy. The Census Bureau reported earlier that U.S. new home sales data rose 18.0% last month to 504,000 units, far surpassing expectations for a 4.4% gain to 430,000 units. New home sales for July were revised to a 1.9% increase from a previously estimated 2.4% drop. Separately, the Department of Energy reported earlier that crude stockpiles plunged by 4.3 million barrels last week, confounding market calls for a build of 386,000, which further stoked expectations that the U.S. economy is improving as evidenced by its demand for fuel and energy. Wednesday's data came a day after a report showed that the U.S. manufacturing sector expanded in September close to market expectations, which fueled already growing expectations that the Federal Reserve may hike interest rates sooner than markets have previously expected.
