Debt Ceiling Deal — Here's How Oil, Gold Reacted After Biden, McCarthy Reached An Agreement
Portfolio Pulse from Bhavik Nair
President Joe Biden and House Speaker Kevin McCarthy reached a tentative deal on the borrowing limit, causing oil prices to rise and gold prices to fall. The United States Brent Oil Fund (BNO) closed 1.21% higher, while the Vanguard Energy Index Fund ETF (VDE) lost 0.42%. Gold prices dropped with the SPDR Gold Trust (GLD) closing 0.4% higher and the iShares Gold Trust (IAU) gaining 0.44%.
May 29, 2023 | 3:28 am
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POSITIVE IMPACT
The United States Brent Oil Fund (BNO) closed 1.21% higher after the debt ceiling deal was reached.
The debt ceiling deal has averted a potential default on the US national debt, which is positive for oil prices. As a result, BNO, which tracks the performance of Brent crude oil, closed 1.21% higher.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The SPDR Gold Trust (GLD) closed 0.4% higher after the debt ceiling deal was reached.
The debt ceiling deal has reduced the demand for safe-haven assets like gold. However, GLD, which tracks the performance of gold, closed 0.4% higher. This could be due to other factors affecting gold prices or market fluctuations.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The iShares Gold Trust (IAU) gained 0.44% after the debt ceiling deal was reached.
Similar to GLD, IAU, which also tracks the performance of gold, gained 0.44% after the debt ceiling deal. This could be due to other factors affecting gold prices or market fluctuations.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The Vanguard Energy Index Fund ETF (VDE) lost 0.42% after the debt ceiling deal was reached.
Despite the positive impact of the debt ceiling deal on oil prices, VDE, which tracks the performance of energy stocks, lost 0.42%. This could be due to other factors affecting the energy sector or individual stocks within the ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100