Oil dips as Iran talks continue, gold flat

Oil eases as talks continue

Oil prices are continuing to soften on Wednesday, as traders continue to weigh up the prospect of a nuclear deal between the US and Iran that could see more than a million barrels of oil flood the market at a time when it’s very much needed. One eye will also be on the EIA inventory data after API reported a more than two million barrel drawdown on Tuesday.

WTI has slipped back below USD 90 but Brent is continuing to hold around there, after finding strong support over the last day or so. If US-Iran talks continue to progress, this level should come under some pressure, while a collapse of negotiations could be the catalyst that drives the price towards triple-figure territory.

Gold continues to push key resistance

Gold is relatively flat on the day but has remained well supported after registering a sixth winning day in seven. The yellow metal is once again seeing some resistance around USD 1,830, a break of which could open up a move towards USD 1,850.

Yields have softened a little over the last couple of days, especially in Europe, where policymakers are pushing back against market expectations for interest rates this year. We’re still seeing 40 basis points of hikes being priced in by the end of the year which would be quite the shift. But that may be providing gold some further support in the near term.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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