Gold, Crude Oil Outlook: Weaker Dollar and Reflation Hopes Underpin Prices
GOLD, CRUDE OIL PRICE OUTLOOK:
Gold prices are working on a three-day rally to US$ 1,850, up nearly 2.5% from Monday’s lows
WTI crude oil prices jumped 2% on Yellen’s push for fiscal stimulus, which raises reflation hopes
A weakening US Dollar and stimulus hopes may continue to support commodity prices
Gold prices climbed for a third day as the US Dollar fell alongside Treasury yields, alleviating pressure on precious metal prices. Last night, US Treasury Secretary nominee Janet Yellen boosted market confidence by showing her support for Biden’s US$ 1.9 trillion stimulus package in the Senate confirmation hearing. Yellen’s comments revitalized hopes for reflation and brightened the prospects for economic recovery, sending risk assets broadly higher alongside gold and crude oil prices.