Oil stable at $100, gold eyes Powell speech

Oil steadies around $100

Oil prices are a little higher, with Brent hovering around $100 a barrel and WTI above $93. It’s been well supported this week by comments from Saudi Arabia Energy Minister Abdulaziz bin Salman, who claimed there’s a disconnect between market pricing and fundamentals, suggesting OPEC+ could cut output in the future.

Suddenly the prospect of a nuclear deal between the US and Iran, or a global growth slowdown, isn’t quite the bearish development for oil that many hoped. Although in reality, the group was never going to sit back and watch the price tumble as the world was flooded with extra oil or demand growth stalled.

Gold still holds hope of $1,800

Gold is pulling back again ahead of Jerome Powell’s speech later on. A hawkish message that actually gets through to the markets could be a blow to the yellow metal as it may lift the dollar and US yields which have typically not been positive for it. That said, investors have been far more open to any remotely dovish message so this could be far more impactful and potentially bullish for gold, which will still have an eye on $1,800. A move lower could see support tested around $1,730.

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