Gold
MARKET VIEW By Money Life Research
Weekly changes: XAUUSD +3.71%
Gold had its best week since November, rising to 1,850 USD. The rally was caused by a surprise slowdown in U.S. job growth, supporting the case for continued economic stimulus and low-interest rates.
The U.S. dollar weakened with U.S. Treasury yields slide after the labour news, boosting demand for gold as an alternative asset.
KEY POINTS
The inflation expectations drove higher amid a commodities boom, increasing gold’s appeal as a hedge. The jobs numbers provide traders with the view that monetary tightening remains distant, further helping precious metal. Technically, if the price stays anywhere above the 1,815 USD level, the next possible target might be the 1,856 USD with the continued surge towards the 1,876 USD.
Important levels: 1,799, 1,815, 1,828, 1,844, and 1,856.
Oil
MARKET VIEW
Weekly changes: XBRUSD +2.88%
XBRUSD (Brent oil) climbed to 69.50 USD per barrel before declining to the 68.00 level by the end of the week. The oil price range has been widening as far as the COVID situation in India worsened. Nevertheless, the ‘black gold’ had its second consecutive week in gains.
The EIA reported a U.S. inventory decline of 7.99 million barrels for the week to April 30. The U.S. oil and gas rig count, an early indicator of future output, rose eight to 448 this week, its highest since April 2020, energy services firm Baker Hughes Co said.
KEY POINTS
China’s crude oil imports in April fell by 11 per cent, according to energy analytics firm OilX, to 10.41 million BPD. Higher prices are one reason for the expected slowdown in imports as China has already stocked up on cheap crude and can wait for prices to moderate.
The economists believe the upcoming summer driving season will boost the demand for gasoline and keep the oil prices from decline. The European Union said this week it might begin allowing foreign tourists into the Schengen zone starting from June to avoid a second spoiled tourist season. In the U.S., states began to relax movement restrictions as the rates of vaccinated people continued up. Oil prices reflect this news and expectations that travel will soon pick up thanks to mass vaccinations and boost oil demand.