GOLD & CRUDE OIL TALKING POINTS:
- Gold prices[1] stall at three-month resistance despite US Dollar[2] weakness
- Crude oil prices[3] stalling at chart support below $58/bbl figure on WTI
- Trade war escalation risk eyed on Trump/Abe, EU ministers’ meetings
Gold prices mostly idled Friday despite a weaker US Dollar[4], consolidating the highs of the prior day’s spirited advance[5] unable to muster substantive follow-through. Crude oil prices edged up a bit in what looked to reflect a broader retracement across sentiment-geared assets following Thursday’s dramatic selloff[6].
GLOBAL TRADE WAR ESCALATION RISK IN FOCUS
Looking ahead, holiday trading closures in the UK and the US might make for a quiet start to the trading week. The much-anticipated European Parliament elections seem to have passed without incident[7], at least for now. News-flow informing global trade war escalation fears may yet trigger knee-jerk volatility however.
US President Trump is visiting Japan to discuss a range of issues including bilateral trade relations with Prime Minister Abe. Meanwhile, a meeting of EU trade ministers will address upcoming negotiations with the US on industrial tariffs and a still-possible levy on auto imports.
While no major policy announcements are expected from either meeting, the tone of outgoing commentary might inspire a response. If they portend greater scope for cross-border tensions, gold may edge higher as crude oil weakens in risk-off trade.
