GOLD & CRUDE OIL TALKING POINTS:
- Gold prices[1] may extend gains as Sino-US trade war sours sentiment
- Uneven US Dollar[2] gains may be insufficient offset to bond yield drop
- Crude oil prices[3] may overlook API data with OPEC+ meeting eyed
Gold prices marked time yesterday, digesting losses after Friday’s dramatic selloff[4]. A tepid downshift in Treasury bond yields offered a bit of support as trade war jitters undermined risk appetite[5] but a resilient US Dollar offered a counterweight, capping the capacity for anti-fiat gains.
Crude oil prices mounted a spirited recovery after Friday’s dramatic plunge as markets position for this week’s much-anticipated OPEC+ meeting. The gathering of cartel officials and their counterparts from like-minded producer nations will weigh a Russia- and Saudi-backed proposal to ease coordinated output curbs.
Moscow and Riyadh – until recently the leading voices directing the scheme as an effort to drain brimming global inventories and boost prices – now want to scale it back to offset supply disruptions from Venezuela and Iran. This is opposed by other producers however, setting the stage for a contentious sit-down.
Against this backdrop, prices rose amid reports that preliminary talks envision an output boost of 300-600k barrels per day that lasts for the next several months. That is a far more modest proposal than the 1.5 million barrel increase favored by Russia.
GOLD MAY RISE ON TRADE WAR WORRIES, API DATA DUE
From here, swelling risk aversion might help gold mount a more significant recovery. Signs of escalation in the Sino-US
