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GOLD & CRUDE OIL TALKING POINTS:

  • Gold prices[1] snap losing streak as bond yields fall in risk-off trade
  • Crude oil prices[2] drop with shares, Macron/Trump presser helps
  • Futures signal continued risk aversion, EIA inventories data due

Gold prices edged up as sentiment soured in Wall Street trade[3], sending capital fleeting for the safety of Treasury bonds and weighing on yields. That offered a familiar lift to non-interest-bearing assets epitomized by the yellow metal. Crude oil prices fell in with the same dynamic as the WTI benchmark tracked the bellwether S&P 500[4] stock index downward.

Hopes for cooling tensions with Iran also hurt energy prices. French President Emmanuel Macron voiced support for negotiating a new nuclear disarmament deal with Tehran in joint presser with US President Donald Trump. The latter has voiced sharp criticism of the accord signed by the Obama administration. Mr Macron seemed to be signaling Europe’s willingness to be flexible to keep the US on board.

STOCK FUTURES FLASH “RISK-OFF”, EIA DATA DUE

Looking ahead, EIA inventory flow data is on tap. That is expected to show US crude stockpiles shed 1.27 million barrels last week. An analogous private-sector estimate from API predicted a 1.1 million barrel gain instead. An official result that hews closer to that outcome may see oil prices extending recent losses. Meanwhile, gold may extend gains as stock index futures hint at continued risk aversion ahead.

See our quarterly gold forecast[5] to learn what will drive prices through mid-year!

GOLD TECHNICAL ANALYSIS

Gold prices corrected higher after three

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currensceneFLOGO WHTsquareThough not the oldest form of currency, some form of shell money appears to have been found on almost every continent. The shell most widely used worldwide as currency was the shell of Cypraea moneta, the money cowry.

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