Oil loses gains on Putin comments
Oil prices are a little flat on Friday and have given back most of the gains from earlier in the session when they were more than 4% up on the day. The comments from Putin didn’t just give risk appetite a lift, it eased the pressure on commodity markets. Prices remain extremely high though so much more progress is needed but it’s hopefully a step in the right direction.
We’ve seen some positive moves this week and comments from the UAE in respect to pushing for higher output can only be a good thing. And the US and others looking to strike agreements with sanctioned countries will also help alleviate some of the pressures that have contributed to oil hitting levels that many consider recessionary if maintained.
Gold slips but upside risks remain
Gold has fallen more than 1% on the day and fallen further from the USD 2,000 level it briefly traded above earlier in the week. Putin’s comments naturally contributed to the decline in the yellow metal which is now trading a little off the session lows. Improved risk appetite and lower commodity prices are obviously negative for gold.
Whether we see that continue is another thing, both into the weekend and beyond. I’m struggling to be in any way optimistic on the back of Putin’s comments and I expect there’ll be plenty more setbacks in the coming weeks and months. Hopefully I’ll be proven very wrong, at which point gold could have further to fall.