Gold (XAU/USD) is declining for the second day in a row. The reason of such a dynamic is that investors have turned to stocks.
Crude declines moderately in Asia
On Monday, oil gave up slight early revenues in Asia with China shut for a public holiday and traders shrugging off news at the weekend on positive output cuts by Russia as well as Iraq’s pledge to step-up compliance.
May delivery US West Texas Intermediate crude futures lost 0.14%, hitting $50.53 a barrel in New York. In London, June delivery Brent crude futures dipped 0.24%, hitting $53.40 a barrel.
The previous week, crude futures settled higher for the fourth session in a row, extending a soar to the strongest value in more than three weeks amid optimism that OPEC is going to extend its output-cut deal beyond June.
Sentiment in the crude market improved this week in wake of extremely supportive rhetoric from a number of OPEC nations, who want to extend output cuts into the second half of this year.
Last year in November, OPEC agreed to curb its output by approximately 1.2 million bpd between January and June, while Russia along with 10 other non-OPEC producers have decided to jointly reduce by an additional 600,000 bpd.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.