Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Follows Treasury Yields, Gold Rally Fades

By MarketPulse (Ed Moya)CommoditiesJul 21, 2021 12:04AM ET
www.investing.com/analysis/crude-follows-treasury-yields-gold-rally-fades-200592619
Crude Follows Treasury Yields, Gold Rally Fades
By MarketPulse (Ed Moya)   |  Jul 21, 2021 12:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Crude prices are mirroring the rebound with Treasury yields as energy traders still see a very tight market despite all the recent virus jitters.   The oil market could get a lot tighter if more companies follow the potential story that global miner BHP Group (NYSE:BHP) is considering exiting the oil and gas business. 

While the global pressure to reduce one’s carbon footprint seems to only grow, the energy market could see some supply issues over the next year and that should keep oil prices supported.

The crude demand outlook won’t improve much until the current Delta variant wave passes and vaccinations efforts improve globally.  The fact remains the oil market is strongly in a deficit and that most of the world won’t commit to a big disruptive lockdown that will kill short-term crude demand.  Oil prices are still likely to make a run towards USD 80 a barrel later this year.

Gold well-supported at USD 1800

Gold prices gave up their earlier gains after the bond market rally was exhausted and delivered a steeper curve.  Wall Street got its Tuesday rebound and that was good news for risky assets and not so much for safe-havens such as gold.  The dollar looks like it still has some gains in its future and that could dent the demand for the precious metal.  For now, gold appears to be forming a consolidation pattern between USD 1,800 and US 1850.

The yellow metal has been well supported in recent weeks and that could continue as long as policymakers hold their nerve in the face of surging inflation.

Gold is in a tricky place that requires a Goldilocks situation, with the broader market looking upbeat, but not too positive that an accelerated tapering of asset purchases becomes a dominant theme.  If the bond market sees a slow steepening of the yield curve, that is the perfect environment for gold to break out above the USD 1,850 level.

Crude Follows Treasury Yields, Gold Rally Fades
 

Related Articles

Andy Hecht
Cameco Stock Rebounds Along With Uranium By Andy Hecht - Sep 28, 2021

This article was written exclusively for Investing.com.Uranium is an energy commodity with lots of applications The price moved higher over the past weeks Cameco rebounded with the...

Crude Follows Treasury Yields, Gold Rally Fades

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
simone scelsa
simone scelsa Jul 21, 2021 3:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Is any of these analysts going to point out the price discrepancy between spot gold and physical gold? I invested in the ETC Xtrackers Physical Gold, which has almost recovered from the June slump, whereas Gold spot has not.  Does the Gold spot price really matter anymore?
MuraliKrishna Brahmandam
MuraliKrishna Brahmandam Jul 21, 2021 2:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
big chunky lumpy droppings in stocks needed for gold to go up
Chris Mack
Chris Mack Jul 21, 2021 12:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Is this your first time?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email