What’s next? – GOLD, OIL 08.06.17

GOLD
Gold futures eased in early trading on Thursday, giving up some previous day gains ahead of big political events that supported demand of safe haven assets.
On the Comex division of the New York Mercantile Exchange, gold for June delivery was trading 0.48 percent lower at $1287.00 a troy ounce as of 04:45 GMT.
The yellow metal has benefited from political uncertainty and a weaker US dollar. As gold is a greenback-denominated commodity, a weaker currency makes it more attractive to investors.
On Wednesday, Bloomberg suggested that the European Central Bank will reduce its inflation forecast for the next three years to 1.5 percent as energy prices are seen lower.
The ECB is meeting on the day for a new monetary policy decision. The regulator is widely expected to leave untouched its current quantitative easing program and interest rates levels.
ECB President has defended the idea that monetary stimulus is still required to ensure a proper economic development in the region and that extra measures are evaluated to boost inflation.
Meanwhile in the US, former FBI director James Comey is set to testify before the Senate intelligence committee about his investigation into possible relations between the Trump presidential campaign and Russia, as well as few conversations with the Republican leader.
The UK will also be monitored as early parliamentary elections are taking place today. The Conservative Party is expected to fall short from votes to secure a majority in the House of Commons, which could weaken PM Theresa May’s gov ahead of Brexit negotiations.
OIL
Oil futures moved higher in early trading hours on Thursday, partially recovering from strong losses in the previous session on the back of an unexpected inventories build.
The US West Texas Intermediate oil futures traded at $45.99 a barrel, up 0.59 percent from its prior close, following a 5 percent loss. The international Brent crude oil futures rose 0.73 percent to trade at $48.41 a barrel as of 04:45 GMT.
On Wednesday, the US Energy Information Administration reported a 3.3 million barrels increase in crude stockpiles for the week ended June 2, against expectations for a 3.5 million barrels decrease. Figures broke a 10-week decline streak.
In the same report, the agency said gasoline supplies grew by 3.324 million barrels compared to a forecasted rise of 580,000 barrels, while distillate products stocks showed a 4.4 million barrels build, a much larger-than-expected increase.
Data reawakened concerns over a deeper crude oil supply glut, which threatens to push crude benchmarks downward. The fundamental context is not currently matching with oil dynamics, as the beginning of the US summer driving season and the extension of the OPEC-led output cuts were supposed to offer considerable support to the uptrend.
A day earlier, the EIA rose it's WTI crude oil price forecast for 2017 by 0.2 percent to $50.78, while lowering next year’s projection by 2.7 percent to $53.61.
Ahead in the week, oilfield services Baker Hughes is due to present its weekly oil rig count.
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