Commodity Weekly: Gold down, oil up on recovery hopes – Saudi Gazette

Commodity Weekly: Gold down, oil up on recovery hopes – Saudi Gazette

Silver's lack of performance, due to its industrial link, has led to an exodus from speculative investors.. Crude oil spent the week trying to recover from the recent carnage which sent the now expired May WTI futures contract deep into negative territory.. The two fundamental drivers behind the first weekly gain in a month were the prospect of a pickup in demand as countries begin to exit lockdowns and a rush from producers, both OPEC+ and others, to cut production in order to avoid forced shut-ins from lack of storage facilities.. If the world runs out of facilities to store unwanted crude oil, production needs to equal demand.. The lack of performance associated with this move away from the most volatile front month has finally, but unfortunately too late for many novice investors, begun to reduce demand.. As mentioned, crude oil was heading for its first weekly gain in a month in response to production cuts being announced by others than just OPEC+ and on signs that the coronavirus-driven plunge in demand has started to bottom out.. Risk to demand from the COVID-19 outbreak sent prices tumbling by 25% before stabilizing and now moving higher..