Brent oil price trading up around $80, gold higher

Brent oil prices pushed higher for a third straight day on Wednesday trading around the $80 mark, even though the US dollar strengthened and fresh economic data gave mixed signals on whether demand for oil will increase. In late Tuesday trading, Brent crude oil futures for December delivery gained 21 cents to settle at $78.97 on the ICE Futures exchange.

The euro dropped back below $1.49 on Tuesday after banking officials in Europe and the US voiced support for the US dollar.

A falling US dollar has helped drive Brent oil prices after crude bottomed at $32 a barrel nearly a year ago. Because crude is traded in dollars, an investor can trade euros for dollars and then buy oil for a relative bargain.

Even with Monday’s strong gain, oil has traded in a range of $75 to $82 for the past several weeks. Demand for oil continues to be weak and supplies are more than ample, and that is keeping oil prices restrained as prices for other commodities, such as gold, continue to climb because of the weaker dollar, PFGBest analyst Phil Flynn said. Gold prices recovered from early losses and finished the day roughly flat, settling at $1,139.40 an ounce, up 20 cents from Monday’s close on the NYMEX.

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