Oil edges higher, gold consolidates

WTI eyeing USD 70 as OPEC+ sticks to taper plan

Oil prices are a little higher on Thursday following a brief pullback as OPEC+ reaffirmed its commitment to 400,000 barrels per day increase each month, despite pressure from the US to increase the number. The meeting was unusually short, lasting just 30 minutes before an agreement was reached.

These meetings have previously dragged on, sometimes for a number of days, before a deal is reached so it was a surprise to see the group agree so quickly. That said, the status quo was expected given the uncertain outlook, healthy price and progress on inventories. The White House was never likely to have much luck.

The drop in price didn’t last long, with EIA reporting a 7.2 million barrel fall in inventories, far higher than expectations of 2.5 million. WTI has its sights on USD 70 once more, where it failed earlier this week after a strong rally from its summer lows.

Gold consolidates ahead of jobs report

Gold has been consolidating in recent days, as traders await Friday’s jobs report before taking the next leap. A weak payrolls number could weigh further on the dollar and propel gold above USD 1,833 where it has repeatedly run into resistance over the last couple of months.

A move above here would put gold back into bullish territory in the near-term and could see it eye up early summer highs around USD 1,900. The yellow metal may also be sensitive to Fed commentary today, particularly views from Daly who sits among the centrists on the committee.

Any move lower in gold will draw attention to USD 1,800 where it saw support on Tuesday after finally breaking above last week. A break below here before the jobs report would be interesting given that the signs aren’t great ahead of the release.

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