The crushing squeeze on oil from the flare-up in cases of COVID-19 is likely to continue this week, as bears eye $35 a barrel and below for US crude.
Gold, by contrast, could have its best moment in nine years. The long-elusive $1,800-an-ounce target appears more likely than ever, as a new wave of coronavirus cases sends investors scurrying from risk markets into safe havens.
A 6% rebound in China’s industrial profits—the first since May—helped restore some optimism over the global economic recovery. But US market sentiment remained on tenterhooks, despite Dow futures indicating a mildly positive open for Monday.
“The trajectory of the COVID-19 pandemic in the United States continues to be a primary concern,” said Jeffrey Halley, senior markets strategist in Sydney for online trading platform OANDA.
“As the consumer of last resort for the rest of the world for so long, an aggressive double-dip in the US economic recovery will surely see the rest of the world catch a cold."
“A global recovery requires both school-yard bullies to be taking the small kids' lunches, not just one of them.”
Daily WTI crude futures
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