GOLD & CRUDE OIL TALKING POINTS:
Gold prices rise as bond yields fall amid post-G20 risk aversion
Crude oil prices lower, echoing weakness in most APAC shares
Stock index futures hint risk-off mood set to find follow-through
Gold prices posted the largest daily gain in three weeks as the US Dollar plunged, boosting the appeal of anti-fiat alternatives epitomized by the yellow metal. The benchmark currency succumbed to two days of jawboning from US President Donald Trump. Crude oil prices marked time, echoing a consolidative tone in broader sentiment ahead of the G20 finance ministers’ meeting in Argentina.
GOLD, CRUDE OIL DIVERGE AS MARKET MOOD SOURS AFTER G20
The post-meeting communique highlighted a litany of widely held concerns but offered no clear path to their resolution, souring investors’ mood. A drop in bond yields against this backdrop gave further support to gold prices. Another leg lower for the US Dollar as Asia Pacific markets took their turn onboarding Friday’s news flow helped as well. Risk-geared oil prices echoed weakness across most regional stock exchanges.
From here, futures tracking the FTSE 100 and S&P 500 equity benchmarks are pointing conspicuously lower, hinting the risk-off mood is likely to carry forward was London and New York come online. The economic calendar is relatively lackluster, offering little that might derail established momentum. The absence of a discrete catalyst might make for greater headline sensitivity however, translating into kneejerk volatility.
