Commodities update: oil surges, gold volatile
Crude prices are surging in anticipation of the FDA’s potential approval of Pfizer’s vaccine, as Asia’s economic recovery, is making Chinese and Indian refiners acquire more oil, and on rising geopolitical risks in the Middle East after Iraq had two wells hit. It seems the impending lockdowns across the US and the potential hit to crude demand is being compensated by improving trends across Brazil, the UK, and most of Asia.
Gold prices went on a rollercoaster ride after a surge in jobless claims boosted stimulus expectations, only for Senate Majority Leader McConnell to throw cold water on the bipartisan stimulus proposal. No progress has been over the red lines despite what Pelosi and Mnuchin have been saying. Fresh stimulus before the holidays was starting to get priced in for gold, so any disappointment over the next few days could trigger further selling pressure.