Oil was up Wednesday morning in Asia thanks to a brightening fuel demand outlook, but the growing number of COVID-19 cases globally capped gains for the black liquid.
Gold was up on Wednesday morning in Asia but a strengthening dollar and rising bond yields capping gains for the yellow metal.
Wall Street rose on Tuesday, with both the blue-chip Dow and benchmark S&P 500 closing at record highs, as economically sensitive value stocks gained with the U.S. Senate’s passage of a $1 trillion bipartisan infrastructure package.
The dollar and U.S. yields extended gains in Asia on Wednesday, spurred by tapering talk, while Asian shares traded sideways on fears about the spread of the coronavirus despite a record close on Wall Street.
Gold was up on Tuesday morning in Asia. However, the yellow metal remained close to multi-month lows, thanks to a strengthening dollar and increasing bets that the U.S. Federal Reserve will begin asset tapering sooner than expected.
Oil prices rose on Tuesday, edging up from a three-week low in the previous session, but gains are likely to be limited on worries that rising COVID-19 cases and restrictions in China will dent fuel demand.