Oil rises after China pledged to boost consumption.. and gold continues to rise

Oil prices rose in Asian morning trading on Monday, boosted by tensions following a drone attack in Iran and Beijing's pledge over the weekend to boost a recovery in consumption that will support fuel demand.

Brent crude futures rose by 0.6%, or the equivalent of 54 cents, to reach $87.20 a barrel, while the US West Texas Intermediate crude rose by 0.7%, or the equivalent of 54 cents, to reach $80.22 a barrel.

According to Reuters, an oil official said that any escalation in Iran could disrupt the flow of crude oil.

Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies known as OPEC + are unlikely to adjust their current oil production policy when they hold a virtual meeting on February 1.

However, signs of rising crude exports from Russia's Baltic ports in early February caused Brent and U.S. mediator WTI to incur their first weekly losses in three weeks last week.

And the Chinese Radio and Television Corporation reported, the day before yesterday, Saturday, that the Chinese cabinet said that it would promote the recovery of consumption as the main engine of the economy and the promotion of imports.

On the other hand, gold prices rose at the beginning of the week's trading, and spot prices increased by 0.3% to $1932.8 an ounce, while futures contracts for February delivery increased by 0.2% to $1932.8 an ounce.

The dollar stabilized and moved away from its lowest level in eight months before a series of central bank meetings this week, including a meeting of the Federal Reserve (the US central bank), with dealers focusing heavily on directing the path of higher interest rates.

The US dollar index, which measures the greenback against a basket of currencies, rose 0.03% to 101.92, pulling away from last week's eight-month low of 101.50.

Despite this, the dollar is still on track to post a fourth consecutive monthly loss of 1.5%, weighed down by expectations that the Federal Reserve is nearing the end of its interest rate hike cycle and that interest rates will not rise as previously feared.