Reports of the US and Iran nearing a new nuclear deal couldn’t have come at a better time and oil prices are slipping at the prospect of more than a million barrels of crude re-entering the market. In the absence of a deal, we could already be talking about triple-figure oil prices.
Of course, the risk of a Russian invasion remains heightened so there’s plenty of potential for oil prices to head higher once more if troops do cross the border but the combination of next week’s Blinkin-Lavrov meeting and a nuclear deal are providing relief for crude markets.
“Gold surged once again on Thursday in risk-averse trade and topped $1,900 for the first time in eight months. The yellow metal is paring gains today, off around four-tenths of one percent, but remains well supported given the level of uncertainty and anxiety that exists,” said Craig Erlam, Senior Market Analyst, UK & EMEA, OANDA.
“It has really benefited from its role as a safe haven and inflation hedge, blowing away any suggestion that gold no longer serves such a purpose or that it’s been in any way replaced. If troops cross the border, we could see it surge once more and potentially eye levels not seen since late 2020.”