The global equities markets have been trading in the green today with futures contracts on the Dow Jones and S&P 500 up to 2.5% and 1.6%, respectively. Yesterday, the Dow saw its biggest climb since 1933.
Oil (WTI) is up 2.2% today (YTD = - 59.80%, trading at $24.50/bbl. This is supported by improved risk sentiment, helped along by the weaker US dollar. Despite this, there is no sign that Saudi Arabia and Russia will come to an agreement and both countries’ plans to pump more oil are still in motion. There have not been any major changes to the situation that would justify a higher price than $30/bbl.
Gold climbed toward 1636 in the Asian session and now hovering around $1,600/ounce. The US dollar which ended its 10-day bull run yesterday, helping the yellow metal to get supported as a hedge against lower yields. We believe any drop could be seen by traders as opportunity to step in, with expectation at $1,635 and $1,655 if $1,555 holds.