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Oil edges higher ahead of OPEC, gold eyes nonfarm payrolls

June 2, 2023

NEW YORK (June 2) Oil prices are edging higher into the end of the week, perhaps a sign of nerves appearing before the OPEC+ meeting this weekend. While there seems to be a widely held view that the group won’t announce any further cuts, it’s worth noting that the same was true at the last meeting and then the group announced cuts of roughly another million barrels.

And while there have been comments to suggest the alliance isn’t likely to cut output this weekend, it’s hard to ignore the warnings from the Saudi energy minister to “watch out”, threatening more “ouching” for short speculators. This may be playing into the mind of traders fearing another surge on the open next week.

Will the jobs report push gold back above $2,000?

Gold has had a few good days this week, buoyed by an easing of yields which may be related to the debt ceiling deal but I expect it probably has more to do with the Fed commentary on the merits of pausing in June, alongside much better eurozone inflation data.

Whether that will be enough to see it break back above the $2,000 psychological barrier will probably depend on how much of a helping hand it gets from the jobs data shortly. A weak report could push yields lower and give gold another boost while another hot set of numbers could bring an abrupt end to this recovery rally.


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