GOLD & CRUDE OIL TALKING POINTS:
- Gold prices[1] may rise as Trump, Junker strike deal on auto tariffs
- Crude oil prices[2] rise on EIA demand outlook, API inventory data
- Chart positioning sees gold, crude oil struggling to find direction
Gold prices made little headway yesterday. A narrow pullback in the US Dollar[3] offered support to the benchmark anti-fiat asset early in the session but follow-through proved lacking, with traders seemingly unwilling to commit ahead of incoming event risk. The spotlight is on a meeting between US President Donald Trump and EC President Jean-Claude Junker in the day ahead.
Mr Junker arrives at the White House on a mission to dissuade Mr Trump from moving forward with proposed tariffs on auto imports. US Department of Commerce hearings showed the duties are deeply unpopular domestically last week, hinting the President may be keen to scrap them[4]. If Junker is able to capitalize on this and cobble together an accord, rising bond yields may hurt the yellow metal as risk appetite firms.
CRUDE OIL PRICES MAY RISE AS US INVENTORIES DROP
Crude oil pricesedged up as the EIA predicted rising demand from China, India and Africa through 2040 in its International Energy Outlook report while API data showed US stockpiles fell last week. The private-sector estimate saw 3.16 million barrel outflow from crude storage. Gasoline and distillate stocks shed 4.87 million and 1.32 million barrels respectively.
Official DOE inventory statistics due to cross the wires today are expected to produce more modest results. Economists envision drawdowns of 2.2 and 1.2 million barrels from crude and gasoline storage
