Saudi Arabia successfully talks up oil
Brent crude is back above $100 on Thursday, following the verbal intervention from Saudi Arabia this week. The suggestion that the price did not align with fundamentals and that OPEC+ could cut output has clearly had the desired effect. It may also make the chance of a move back below $90 in the near-term hard to come by unless a nuclear deal is agreed upon and OPEC+’s appetite for cuts put to the test.
Welcome reprieve but resistance lies ahead
Gold is enjoying some reprieve today as risk appetite has improved and the dollar pared its recent gains. Slightly lower yields in the US will be welcomed after a period of creeping higher, piling the pressure on the yellow metal that at one point had its sights set on $1,800. It’s heading in that direction again but given the recent trend, it may face strong resistance along the way.
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