GOLD
The gold price is steady at $1,730 in a scenario where investors are looking for fresh stimuli to move markets. The risk on approach seen on stocks in the last few days pulled down the price, which is now close to the key level of $1,725. Only a clear recovery of $1,750 would open space for further rallies, while a decline below $1,725 would increase the likelihood of another test of $1,700 and potentially down to $1,671-$1,675, where there is a strong static support.
OIL
The oil price is consolidating, while the July expiry is challenging its recent high of $34.50. The positive mood seen in the stock markets is pulling oil up with markets now revising downwards the risks from coronavirus. The current price seems to reflect that markets are viewing the risk of a second wave as being relatively low, or at least investors are betting that this will not generate further closures and lockdown. The huge contango seen in late April is now much smaller with the market seeming more balanced. However, this situation could change quickly as there remains a large amount of uncertainty.
