We are expecting the continuation of the bullish rally in the oil market. OPEC+ pushes for cuts till the year end that could heighten the rally in oil. The Saudi-led OPEC meets on July 1 among its 14 members and a day later with the group of 10 oil-producing allies led by Russia to talk about extending supply cuts. Russian President Vladimir Putin told Saudi Arabia's Crown Prince Mohammed bin Salman he was happy to discuss cooperation between the two countries in the energy market. Positive negotiations U.S. President Donald Trump and Chinese President Xi Jinping they form a high demand for BRENT this week.
Trading recommendation: Buy 65.60 and take profit 68.54.
The United States and China agreed to restart trade talks and Washington will not levy new tariffs on Chinese exports. Before the talks, Trump had threatened to extend existing tariffs to cover almost all imports from China into the United States if the meeting brought no progress. Trump has threatened China and Beijing agreed to make concessions. We are expecting completion of the trade negotiations, the U.S. and China in late September. Donald Trump will wait for the Federal Reserve interest rates to fall. This is a positive signal for the U.S. stock market.
Trading recommendation: Buy 2955 and take profit 2990.
Positive trade negotiations between the USA and China will have a negative impact on the value of the precious metal. Investors buy's gold during periods of instability. Donald Trump needs to conclude a trade agreement with China before the U.S. presidential election on November 3, 2020. The Federal Reserve may cut interest rates on July 31 and September 18. We are expecting the conclusion of a trade agreement the United States and China after September 18. This is a positive signal for “high-yield” assets and a negative signal for gold.
Trading recommendation: Sell 1398 and take profit 1375.