Investing.com– Gold prices stabilized on Tuesday after rising sharply in recent sessions, as traders now look for more cues from the U.S. presidential election and a high-level political meeting in China.
Oil rose sharply on Monday after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) postponed plans to increase production this year, presenting a tighter outlook for markets.
However, despite recent gains, oil remains near three-year lows reached earlier this year as markets remain concerned about slowing demand, particularly in China, the main importer.
Heightened tensions in the Middle East also provided limited support for crude oil, even as Iran prepared to launch a missile strike against Israel. Israel also continued its offensive against Hamas and Hezbollah.
Prices expiring in January were down 0.04% at $71.44 a barrel, while oils were down 0.03% at $75.12 a barrel as of 07:30.
Chinese NPC meeting in sight for more signs of stimulation
The Standing Committee of China's National People's Congress – the country's most powerful political body – began a four-day meeting on Monday.
The NPC is expected to approve the government's increased fiscal spending, especially after Beijing presented a series of fiscal measures aimed at supporting growth.
But China has given no indication of the size or scale of the planned measures, given that only the NPC can approve the increase in tax spending. According to recent reports, the country could approve a debt increase of around $1.4 trillion over the next few years.
Any sign of concrete stimulus measures in China is likely to support oil markets, given that the country is the world's largest crude importer. Concerns about slowing demand in China weighed on oil prices.
US elections and Fed meeting expected
Markets were also awaiting further cues from the United States, as the country heads into a hotly contested presidential election on Tuesday. Recent polls have shown that Donald Trump and Kamala Harris are largely neck and neck, and that the outcome of the vote is uncertain.
After the elections, the focus this week will also be on the , during which the central bank is expected to cut interest rates by 25 basis points.
The election and Fed meeting are expected to provide more guidance on the world's largest fuel consumer, especially with demand expected to cool as the winter season approaches.
