Oil Eases After Laura, Gold Eyes $2,000

Oil eases off its highs

Oil prices are flat on Friday, having pulled off their highs a day earlier as US refineries were spared the destruction of Hurricane Laura which made landfall on Thursday morning.

While there were shutins as Laura approached, the facilities should be up and running quickly after avoiding any major damage meaning output is only marginally affected. The impact could have been much greater, although coming at a time when there’s not exactly a shortage, prices had only risen a little in anticipation.

WTI is back at $43 and Brent at $45.50, both a little below their 200 day simple moving averages.

Gold eyeing $2,000

A choppy couple of days for gold prices but they have resumed their push higher on Friday, supported by a softer dollar and real yields edging lower.

The greenback is now testing its August lows and could resume the downtrend if we break below. For gold, $2,000 is key, a break above here could spur more buying while another failure could see the yellow metal consolidate.

Longer term, it’s hard not to be bullish gold as the Fed is not tightening any time soon and if anything, more stimulus or yield curve control may be necessary. As ever, patience may just be key.

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