GOLD & CRUDE OIL TALKING POINTS:
- Gold prices rise as bond yields drop amid risk aversion
- Sentiment recovery, Powell speech may rekindle selloff
- Crude oil prices fall as OPEC+ mull increasing output
Gold prices posted the largest one-day gain in six weeks as global risk aversion sent capital flows rushing to the safety of Treasury bonds. That pushed yields lower and bolstered the relative appeal of non-interest-bearing alternatives epitomized by the yellow metal.
The markets’ mood soured as President Trump called for a similar probe into auto imports that precededthe recent steel and aluminum tariff hike. Canada is a major importer of motor vehicles into the US, so the move casts a cloud over NAFTA renegotiation efforts. He then cancelled a June summit with North Korea’s Kim Jong-un, ominously hinting that the US military is prepared to take whatever action necessary.
Crude oil prices fell with stocks as sentiment deteriorated.While US sharesbounced into the close however, the WTI contractstruggled as Russian energy minister Novak said the OPEC+ grouping of producers engaged in a coordinated output cut scheme will discuss rebuilding supply levels in June. Separately, Deputy Finance Minister Kolychev said there is “no sense” in further oil price gains.
POWELL SPEECH, DAY 2 OF ST PETERSBURG FORUM IN FOCUS
Looking ahead, a brighter disposition across global exchanges bodes ill for gold. Futures tracking the FTSE 100 and S&P 500 benchmarks are pointing decidedly higher before London and New York come online, which may translate