Oil Trader Focus On OPEC, Higher Dollar Impacts Gold

prices took some serious beating yesterday, mainly because of more strength in the . In other words, rising US Treasury yields are taking the shine away from the precious metal. The gold price is trading at a very critical junction. It is highly likely that we may see the gold price breaking below the 1,700, which may unleash fresh bearish bets, which could drive the price towards the 1670 to 1660 price level. 

The reality is that the coronavirus recovery process is picking up some serious momentum because of the ongoing progress on the vaccine front in the US. The fact that 90% of US adults will be eligible for vaccine within in three weeks will further lift the prospects of strong economic recovery. No one really wants to favor gold prices under those circumstances.

As for the prices, the focus remains on the upcoming OPEC plus supply policy . Oil prices are likely to remain under pressure as the traffic improves near the Suez canal. As far as it goes for the OPEC supply decision, it is likely that we may see another extension of the current agreement. This could be due to the arrival of the third wave of coronavirus in Europe. But of course, there is always an element of surprise, and the cartel can always focus on the more optimistic side, and that is the ongoing progress on the coronavirus vaccine front. The best scenario for the oil market will be if the OPEC plus keeps the millions of barrels off the market as they are currently doing so. Saudi Arabia has indicated that it is prepared to accept an extension after current production cuts, and the country can bear the pain of lower oil production for some time. 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

(Visited 5 times, 1 visits today)