CRUDE OIL & GOLD TALKING POINTS:
- Crude oil prices[1] await clarity on OPEC-led production cut scheme
- Gold prices[2] might remain rudderless until the FOMC[3] rate decision
- OPEC, API and EIA reports may to impact of Trump/Kim summit
Commoditypricesdid not stray far from familiar ranges Monday as traders braced for a week packed with top-tier event risk. Crude oil edged up but stopped short of showing directional conviction as traders await guidance on the fate of an OPEC-led production cut scheme.
Russia and Saudi Arabia have voiced support for relaxing output quotas in response to supply disruption in Venezuela and the re-imposition of sanctions on Iran. Other participants in the supply reduction program – such as Iraq, for example – have pushed back against such a move.
A decision may emerge from the upcoming OPEC meeting on June 22 in Vienna. In the meantime, investors will look to soundbites from the sidelines of a World Cup match between Saudi Arabia and Russia this Thursday in Moscow. The leaders of both countries are expected to attend.
As for gold prices, they continued to be locked in place as the US Dollar and Treasury bond yields carve out divergent paths[4]. That puts the yellow metal’s roles as anti-fiat alternative and benchmark non-interest-bearing asset in direct opposition, leaving it rudderless. That may persist until the upcoming Fed rate decision[5].
OPEC, API AND EIA DATA MAY TOP IMPACT OF TRUMP/KIM SUMMIT
From here, a meeting between US President Trump and North Korea leader Kim Jong-un may offer a bit of a lift
