Bearish sentiment is building in oil markets as China's covid crisis continues, U.S. oil inventories build, and the oil price cap faces questions
At 07:00 ET (12:00 GMT), the Dow Futures contract was up 60 points, or 0.2%, S&P 500 Futures traded 5 points, or 0.2%, higher, while Nasdaq 100 Futures dropped 15 points, or 0.1%. The main stock indices were closed for the Thanksgiving holiday on Thursday, and are set to finish early Friday. U.S. stock futures suggest investors are positioning for the Fed to increase interest rates by 50 basis points next month, after four consecutive hikes of 75 basis points.
Gold prices were steady below a one-week high hit on Friday as the U.S. dollar firmed, but the non-yielding metal looked set to eke out only a small weekly gain on expectations the U.S. Federal Reserve would scale back its rate-hiking stance. With bullion tracking the dollar and low-volume trading, "it's not going to take much to move the market in either direction and probably going to continue to see more of the same throughout the day," said Jim Wyckoff, senior analyst at Kitco Metals. This year's high interest rate hikes from the U.S. Fed have kept a leash on non-yielding gold's traditional status as a hedge against inflation and other uncertainties.