Russia’s Alexander Novak Cools Talk of OPEC+ Output Cut
On Thursday, oil prices slipped as Alexander Novak, Russian Deputy Prime Minister, seemed to downplay the expectation of an OPEC+ output cut ahead of the meeting in just over a week. There were suspicions of a second consecutive cut as prices remained below $80 a barrel, the point at which the group had made a surprise cut previously. Prince Abdulaziz bin Salman, Saudi Energy Minister, warned short speculators to “watch out.” However, Novak’s comments suggest that there’s not much support for another cut so soon after the last. This could make any unilateral action by Saudi Arabia less effective in maximizing the gains.
Gold Slips Further After FOMC Minutes
Due to remaining uncertainty about economic recovery, a stronger dollar, and higher US yields pushing it down again today, gold prices have gone below technical support at $1,960. Experts believe this downturn indicates a deeper correction is on the way. Also, another rate hike over the next couple of Fed meetings has become more likely than not, which has helped boost the dollar’s latest strength at the cost of gold. As a result, the yellow metal may face further losses after breaking that support level. Technically, support will now come around $1,940 and $1,900 being the next psychological barrier. Data on US inflation, income, and spending scheduled for Friday would be the next significant catalyst for gold, barring any surprising statements by Fed officials.