The chorus of “reopen” across the world is prompting investors to rediscover risk appetite lost to the Covid-19 pandemic. Higher oil and stock prices also means any upside in gold and other safe havens is capped for now.
Oil prices climbed on Wednesday, trimming some of this week's steep losses after U.S. stockpiles rose less than expected and hopes grew for demand to pick up as some European countries and U.S. cities moved to ease coronavirus lockdowns.
Oil prices rose on Friday, gaining further ground as some producers like Kuwait said they would move to cut output swiftly to try to counter the evaporation in global demand for fuels caused by the coronavirus pandemic.
The oil market is set to be forced into a “violent rebalancing” over the coming weeks as rapidly filling storage leads to significant production cuts and higher prices, according to Goldman Sachs Group Inc (NYSE:GS).
Gold prices in Asia were down on Friday as global stocks rose on the back of U.S. President Donald Trump's plans to reopen the world’s biggest economy after a month-long lockdown to prevent the spread of COVID-19.
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