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GOLD & CRUDE OIL TALKING POINTS:

  • Gold prices[1] eye critical support after Powell-induced downswing
  • Crude oil prices[2] seesaw as Trump pulls US from Iran nuclear deal
  • US PPI, EIA inventories data headline muted economic calendar

Gold prices fell as the US Dollar[3] returned to the offensive, sapping the appeal of anti-fiat alternatives. The move followed comments from Fed Chair Jerome Powell at an SNB/IMF event in Zurich. He signaled that spillover beyond US borders will not deter interest rate hikes, as expected[4].

The metal subsequently bounced amid swelling geopolitical jitters while crude oil prices plunged after President Trump took the US out of a multilateral nuclear disarmament deal with Iran. The WTI benchmark probably fell amid profit-taking on short term speculative positions betting on just such an outcome. It soon recovered to finish the day effectively flat.

US PPI, EIA INVENTORY DATA

Looking ahead, a relatively quiet offering on the economic data docket is headlined by April’s US PPI report. That is expected to show wholesale inflation slowed last month. The outcome may not garner much attention form the markets absent a wild deviation from forecasts as closer-followed CPI data looms ahead.

That leaves gold prices somewhat rudderless as active Fed policy speculation pauses for want of immediate catalysts. Atlanta Fed President Rafael Bostic is due to speak, but he has already opined this week and his somewhat dovish posture is well-known. A consolidative period may thus be in the cards.

The weekly set of EIA inventory flow statistics is also on

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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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