Oil in the red despite wider market optimism
Interestingly, rising stock markets and a softer dollar are not providing a boost for oil prices, which are trading a little lower as Covid fears dominate.
With global deaths about to pass one million and case numbers across Europe rising even prior to the high risk winter period, the demand outlook for crude is looking challenging. Stable prices for now may be encouraging but the risks remain to the downside, the only opposing factor being OPEC+ following the warnings from the Saudi Arabian Energy Minister.
Gold stable but risks skewed to downside
Gold is another who’s risks appear skewed to the downside, with a softer dollar providing little respite on Monday.
The yellow metal has come under pressure in recent weeks and while it has stabilized a little, there doesn’t appear to be much appetite in the near-term. US real yields have been inching higher which may be contributing to the downward pressure on gold prices and may be one to watch if that gathers any real momentum.
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