GOLD & CRUDE OIL TALKING POINTS:
- Gold price[1] rise grinds to a halt at resistance near the $1300/oz figure
- US Dollar[2], bond yields divergence likely to determine gold’s next move
- Crude oil prices[3] at risk on downbeat macro data, IEA and EIA reports
Gold prices struggled for upside follow-through after Monday’s dramatic surge as risk appetite steadied. US President Donald Trump offered hopeful comments[4] about the possibility of a US-China trade agreement, helping to drive a correction after bloodletting at the start of the trading week[5]. The yellow metal inched lower as the improved mood pushed up lending rates, sapping demand for non-yielding assets.
Cycle-sensitive crude oil prices managed a tepid rise, with the WTI benchmark inching upward alongside recovering stock markets. The upswing receded as API reported that US inventories added a hefty 8.63 million barrels last week. That dwarfs the far more modest 29k barrel inflow expected to be reported in official government data due later today.
GOLD, CRUDE OIL PRICES MAY SUFFER AS MARKETS TURN DEFENSIVE ANEW
Looking ahead, markets may swing back to a risk-off setting. Mr Trump offered ample assurances about an imminent US-China trade pact in recent months only to dial up tariffs and beckon retaliation, so markets may treat his latest pronouncements with suspicion. Meanwhile, soggy Chinese economic data[6] may be matched by similarly downbeat Eurozone GDP and US retail sales figures, stoking global slowdown fears.
Gold will eye the magnitude of divergence in bond yields and
