Crude Oil & Gold Talking Points:
- Crude prices rose as the US pushed allies to cut Iran oil imports to zero
- Gold may fall as trade war worries boost the US Dollar[1] on haven bids
- The commodity and yellow metal are near key levels on the daily chart
Find out what retail traders’ gold buy and sell decisions[2] say about the coming price trend!
Crude oil[3] prices rose to their highest since May 24th on Tuesday despite plans from Saudi Arabia to increase output to a record 10.8 million barrels per day. This followed a response from over the weekend where Saudi Energy Minister Khalid Al-Falih said that the total OPEC+ oil hike will be closer to 1m b/d rather than +600k[4]. The latter estimate was the derived real value from last week’s gathering of the commodity producing cartel.
Rather, oil prices were more interested in developments out of the US. First, the US was reported pushing its allies to cut Iran oil imports to zero by November 4th. More potential supply disruption threats sent the commodity rallying. If that was not enough, API estimates pointed to a larger-than-expected contraction in US crude stockpiles of 9.23m barrels last week.
Meanwhile, gold prices declined on Tuesday largely thanks to a rise in the US Dollar on safe haven bids[5]. The precious metal is known for its anti-fiat properties given that it has no associated yield, thus it often moves inversely to the greenback. The US Dollar also managed to brush off worse-than-expected
