Crude Oil Teases at Break of $100, Gold Vulnerable To Fresh Declines

Talking Points

• Gold and silver vulnerable to further declines as geopolitical risks abate
• Copper’s bounces to critical $3.00 level on China stimulus speculation
• $100 handle continues to cap crude oil gains ahead of inventories data

Gold has been given a reprieve in recent trading as it wavers around the $1,310 level, which follows on from Monday’s dramatic decline of over $26. Meanwhile copper has rebounded back to the key $3.00 handle with newswires attributing the bounce to speculation over fresh stimulus from Chinese policy officials. An upside surprise to US Durable Durable Goods orders data due in the session ahead may bolster demand for growth-sensitive commodities like copper. However, WTI may struggle to break the $100 handle on the back of another weak inventoriesreport.

Gold Bears Letup As Prices Stabilise

There are signs of stabilisation for the precious metals space in Asian trading today as the gold bears pause following a collapse in prices earlier in the week. Easing Ukrainian tensions and hawkish comments from Fed chair Janet Yellen have sapped demand for the fiat-money alternative over the past two weeks as shown in the chart below.