Oil dips as Iran talks continue, gold flat

Oil eases as talks continue

Oil prices are continuing to soften on Wednesday, as traders continue to weigh up the prospect of a nuclear deal between the US and Iran that could see more than a million barrels of oil flood the market at a time when it’s very much needed. One eye will also be on the EIA inventory data after API reported a more than two million barrel drawdown on Tuesday.

WTI has slipped back below USD 90 but Brent is continuing to hold around there, after finding strong support over the last day or so. If US-Iran talks continue to progress, this level should come under some pressure, while a collapse of negotiations could be the catalyst that drives the price towards triple-figure territory.

Gold continues to push key resistance

Gold is relatively flat on the day but has remained well supported after registering a sixth winning day in seven. The yellow metal is once again seeing some resistance around USD 1,830, a break of which could open up a move towards USD 1,850.

Yields have softened a little over the last couple of days, especially in Europe, where policymakers are pushing back against market expectations for interest rates this year. We’re still seeing 40 basis points of hikes being priced in by the end of the year which would be quite the shift. But that may be providing gold some further support in the near term.

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