Oil pulls back on positive talks
Oil prices have fallen considerably today, off around 7%, on optimism around the Ukraine-Russia talks. Crude is still trading above USD 100 though so there’s still a significant premium in the market as a result of the invasion and disruption to Russian supplies on the back of the sanctions.
And the lack of progress on US-Iran talks around the nuclear deal which has been “almost there” for many weeks now is not helping to alleviate any of those pressures. We may be seeing some easing on the back of lockdowns in parts of China in response to surges in Covid cases as the country maintains its zero-Covid policy while the rest of the world transitions into a “living with” approach.
Gold slips as safe havens unwind gains
Safe-haven gold is also falling again on Monday, trading back around USD 1,950 where it has run into initial support. The yellow metal performed very well in recent weeks as risk-aversion swept through the markets and traders sought inflation protection as commodity prices surged.
We’re seeing some of that unwound now and gold suddenly looks a fair distance from the highs it came within a whisker of hitting less than a week ago. It’s now more than 5% from those levels and could continue to fall if talks between Ukraine and Russia make further progress.
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