What’s next? – GOLD, OIL 24.04.17

GOLD
Gold futures slipped in Asian hours on Monday as political risks over the French presidential election eased after centrist Emmanuel Macron and far-right candidate Marine Le Pen won their place at the second round on May 7. So far, polls have shown Macron as the ultimate winner.
According to the interior ministry, Macron has received 23.75% of votes, followed by Le Pen with 21.53%, Fillon taking 19.91% and Melenchon with 19.64%.
On the Comex division of the New York Mercantile Exchange, gold for June delivery was down 1.00 percent to trade at $1276.20 a troy ounce as of 05:40 GMT.
Ahead this week, market participants will be paying attention to monetary policy meetings from the European Central Bank and the Bank of Japan as well as some key economic reports, including Eurozone’s inflation figures and preliminary Q1 GDP in the UK and US.
On Friday, bullion prices settled in green territory as traders flew into safe haven assets before the Sunday election in France and increasing geopolitical tensions in Asia and the Middle East.
Traders were also focus on Washington and its plan to unveil a long-awaited tax reform “very, very soon”. Treasury Secretary Steven Mnuchin said the new administration is currently working on it and assured that the tax reform won’t be compromised by the future of the AHCA.

OIL
Crude prices edged higher in Asian trading hours on Monday following a widely anticipated result in the French election. En Marche! Emmanuel Macron and National Front Marine Le Pen are now set to meet for a runoff on May 7. Attention has now shifted to the Korean peninsula, where tensions spiked as President Donald Trump talked with leaders from China and Japan.
US West Texas Intermediate oil futures traded at $49.85 a barrel on the New York Mercantile Exchange, up 0.46 percent from its prior settlement. The international Brent crude oil futures added 0.54 percent to trade at $52.24 a barrel as of 05:40 GMT.
After a telephone conversation with President Trump, Japanese PM Shinzo Abe said that he appreciates US showing that all options are available when dealing with North Korea.
In a separate call, Trump and his Chinese counterpart, President Xi Jinping also talked about Pyongyang’s missile tests. Xi insisted that China wants to scale down the situation.
Crude benchmarks settled lower on Friday after oilfield services provider Baker Hughes reported a fourteenth consecutive increase of drilling platforms in the United States.
According to the latest data, US shale producers sent the total count to 688 units, the highest level since 2015, fueling concerns that rising American output will derail OPEC-led efforts.
Investors are looking forward to an OPEC meeting on May 25, where representatives will decide whether to extend or not the output reduction agreement.
Ahead this week, attention will be directed to weekly reports on crude and refined products inventories in the United States and remarks from global leading crude oil producers.

Fort Financial Services