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Morning Bid: Gold makes the running as oil fails to fire
  + stars: | 2023-12-04 | by ( Wayne Cole | ) www.reuters.com   time to read: +3 min
Oil failed to sustain an early rally that followed news of attacks on commercial shipping in the Red Sea. Notably, oil prices lost early gains and Brent eased around 57 cents to $78.31 a barrel amid doubts that OPEC+ would be able to maintain planned output cuts, particularly by some African countries. At the same time, U.S. oil output is at record levels above 13 million barrels a day and rig counts are still rising. A commodity faring better is gold, which surged suddenly this morning to top $2,111 an ounce for the first time before paring the gains to $2,086. Yields on U.S. two-year notes rose almost 4 bps, but that follows a drop of 40 bps last week.
Persons: Alexander Manzyuk, Wayne Cole, Treasuries, Yemen's, Brent, Bundesbank, Christine Lagarde, Bonds, Goldman Sachs, Anna Breman, Riksbank, Edmund Klamann Organizations: REUTERS, Bulls, ECB, Thomson Locations: Novosibirsk, Siberian, Russia, Wayne, Red, U.S, Saudi Arabia
Sweden's central bank raised its policy rate by half a percentage point to 3.50% in line with market forecasts on Wednesday and said it was nearly done with policy tightening. While the half-percentage point hike was in line with forecasts, markets cut their expectations of where the Riksbank policy rate will peak to around 3.75% from close to 4.0% prior to the decision. The dovish tilt in policy was underlined by two of the five rate-setters voting for a smaller hike this time. Deputy Governors Martin Floden and Anna Breman wanted a quarter point hike with the flexibility to hike more or less later this year. The central bank said it would continue to focus on new data in determining policy ahead and uncertainty remains high.
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