Gold Prices Stuck Amid Brexit Turmoil as US Dollar, Yields Clash

GOLD CRUDE OIL TALKING POINTS:

  • Gold prices stuck amid Brexit turmoil as US Dollar, bond yields diverge
  • Crude oil prices brush off hefty 10.3 million barrel rise in US inventories
  • SP 500 futures hint at a return to risk-off trade to end the trading week

Commodity prices struggled for lasting direction Thursday. Gold prices were locked in place as worrying Brexit headlines weighed on bond yields and drove the US Dollar higher, putting the metal’s roles as anti-fiat benchmark and non-interest-bearing alternative in conflict.

Meanwhile, crude oil prices overlooked a dramatic build in US inventories. EIA data showed stockpiles added a hefty 10.3 million barrels last week, crushing forecasts calling for a 3.2 million barrel gain. The tepid response may reflect foreshadowing in API figures as well as the preceding record-setting selloff.

GOLD MAY STRUGGLE FOR DIRECTION AS OIL SELLOFF RESUMES

Looking ahead, a lull in top-tier scheduled event risk may put sentiment trends in the spotlight. Bellwether SP 500 futures are pointing tellingly lower ahead, hinting at a risk-off bias. That may help keep gold anchored while

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2018/11/16/Gold-Prices-Stuck-Amid-Brexit-Turmoil-as-US-Dollar-Yields-Clash.html