Oil prices are paring yesterday’s gains in what is yet another volatile session and week. The list of downside risks has definitely grown lately, with growth certainly top of it. Iran nuclear talks have not collapsed yet which remains another potential negative for crude prices given the reported potential for a large amount of crude to come to the market relatively soon.
We may be seeing oil prices stabilising around these levels, with Brent hovering above $92 and WTI choppy around $90. I can’t imagine it will last long considering how the rest of the year has gone with a conclusion on the JCPOA talks probably having an impact one way or another.
Resurgent dollar weighs on gold
Gold is edging lower again as the dollar continues to see strong support. The resurgence in the greenback has weighed heavily on the yellow metal which was already seeing profit-taking after reaching $1,800. It has shown some resilience though so another run towards here isn’t off the cards. It may just be more difficult if the dollar continues to drive higher and yields don’t ease further.