ING commodities strategists Warren Patterson and Ewa Manthey say Gold rebounded 1.85% after last week’s sharp sell-off, helped by lower Oil prices and bargain hunting.
TD Securities strategists Ryan McKay and Bart Melek say headlines around President Trump giving diplomacy more time have removed part of the geopolitical risk premium from WTI Crude and refined products. However, they stress that without a concrete end to the war and with tanker and Houthi attacks ongoing, they do not expect the entire risk premium to disappear on diplomacy headlines alone.
Gold (XAU/USD) tanked to a new year-to-date (YTD) low of $3,880 on Friday, clearing the $3,900 threshold for the first time since October of last year. The Greenback and US Treasury yields edged higher, while risk appetite deteriorated and hawkish Fed rhetoric pushed prices lower.