The price of crude oil declined by around a dollar per barrel as a fluctuating trading. That was as a concern of the continuous COVID-19 pandemic in China and rate hike prospect by the Fed. 

Those two factors defeated a fact of the lacking United States oil stocks due to the snow storm. West Texas Intermediate or WTI crude oil has fallen up to the area of $77,02 per barrel yesterday. 

Crude oil weakened after United States economic data showed that the country's economic growth turned out to be faster than expected. This was not predicted by many analysts before. 

This situation is Raising expectations that the Federal Reserve (Fed) would continue its move to raise interest rates that could hamper fuel consumption. That is why; market participants seem more careful right now. 

Some Airlines Canceled their Flights to US 

It is starting to hurt the bullish momentum because of concerns that the Fed will again raise interest rates. This was said by Phil Flynn, an analyst at Price Futures Group in Chicago.

At the same time, airlines canceled nearly 2000 flights in the US scheduled to fly on Thursday and Friday. This was disrup the holiday walks of thousands and becoming bearish indications for fuel demand.

In addition, the strengthening of the USD and the fall in the stock market as well as fears of the continuation of COVID-19 in China also need to be noted as an important indicator.

It was according to Jim Ritterbusch of Ritterbusch and Associates. Meanwhile, China is still struggling to control COVID-19 infections, according to one WHO official.

Elsewhere, Gold’s Price is Also Slumped 

A hospital in Shanghai is telling its staff to re-prepare for the "battle" against COVID-19. That is as it is estimated that half of the city's 25 million residents may be exposed to the Coronavirus this weekend.

Gold prices plummeted after United States (US) economic data showed that the country's economy was experiencing faster-than-expected growth.

This moment allowing the USD to strengthen and allow the Federal Reserve to take bolder steps in the fight against inflation. Mean while, the Spot gold prices yesterday plummeted to an area of $1784.73 per troy ounce.

Jobless claims increased more than expected in America. However, the economy in the third quarter turned out to be faster than expected, rising 3.2% above the forecast of just 2.9%.

The Fed may Extend Their Rate Hike 

The economic figures that People are seeing indicate that there is a possibility that the Fed will extend the rate hike cycle. It's like driving but the brakes remain in place.

That was where gold is still likely to rise, but it won't be too high. The main reason is that the Fed has committed to lowering inflation to its 2% target.

This opinion was said by Jeffrey Sica as a CEO of Circle Squared Alternative Investments. The same overviews were also told by some other economist in the forex market. 

The dollar index strengthened, making gold is more expensive for market participants who do not hold the USD. This fluctuating situation must be faced smartly by the investors and market participants.

Gold is Still Affected by Inflation 

Gold prices have fallen more than $250 a troy ounce since March. That was as central banks raised their interest rates to cope with inflation. 

Although gold is still considered as an anti-inflationary asset, rising interest rates remain more attractive because they promise faster returns. That is why; this condition affects the precious metal commodity. 

An Independent analyst, Ross Norman, underscored that it is necessary to be cautious in responding to gold price movements as many market participants are absent ahead of the holidays. 

Thin trading volumes may still be prone to excessive movement. That is why; he recommended people to be more patient and see a further update.