Oil pares gains on Putin, gold dips

Oil loses gains on Putin comments

Oil prices are a little flat on Friday and have given back most of the gains from earlier in the session when they were more than 4% up on the day. The comments from Putin didn’t just give risk appetite a lift, it eased the pressure on commodity markets. Prices remain extremely high though so much more progress is needed but it’s hopefully a step in the right direction.

We’ve seen some positive moves this week and comments from the UAE in respect to pushing for higher output can only be a good thing. And the US and others looking to strike agreements with sanctioned countries will also help alleviate some of the pressures that have contributed to oil hitting levels that many consider recessionary if maintained.

Gold slips but upside risks remain

Gold has fallen more than 1% on the day and fallen further from the USD 2,000 level it briefly traded above earlier in the week. Putin’s comments naturally contributed to the decline in the yellow metal which is now trading a little off the session lows. Improved risk appetite and lower commodity prices are obviously negative for gold.

Whether we see that continue is another thing, both into the weekend and beyond. I’m struggling to be in any way optimistic on the back of Putin’s comments and I expect there’ll be plenty more setbacks in the coming weeks and months. Hopefully I’ll be proven very wrong, at which point gold could have further to fall.

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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