GOLD & CRUDE OIL TALKING POINTS:
- Gold prices[1] pressured lower, fundamental cross-currents stall progress
- Crude oil prices[2] fall on Venezuela output prospects, EIA inventory data
- De-risking ahead of G7 summit may hurt crude oil as gold treads water
Gold prices stalled, torn between the competing influences of a falling US Dollar[3] and rising Treasury bond yields. The markets continue to unwind last week’s Italy-inspired moves[4], with the exit of haven-inspired capital flows weighing on the greenback and bonds alike. That has put the yellow metal’s roles as anti-fiat alternative and non-interest-bearing asset benchmark in conflict.
Crude oil prices turned lower again as Venezuela said it could boost output if OPEC+ output caps are loosened. An unexpected surge in US inventories weighed as well. Official EIA data showed stockpiles added 2.07 million barrels last week, clashing with analysts’ forecasts calling for a 2.17 million barrel drop and an API estimate flagging a 2.03 million barrel drawdown[5].
G7 SUMMIT IN THE SPOTLIGHT
The upcoming G7 leaders’ summit is likely to dominate the spotlight from here. A lull in big-ticket scheduled event risk will give investors space to consider what might happen if the bellicose posture on trade negotiations adopted by US President Trump[6] will produce settlement or escalation.
Worries about the latter might translate into preemptive de-risking that hurt crude oil alongside share prices. Gold may might remain stuck however as current trading patterns reverse while leaving the same underlying conflict firmly in place.
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