Oil rises as 2015 Iran deal revival questionable

There are reports of a potential hitch in reviving the 2015 Iran nuclear deal, which has lifted oil prices at the start of the week. Last week, the prospect of a breakthrough in talks saw oil lose over 2.5% because an agreement could see the US lift sanctions on Iran. However, US Secretary of State Blinken poured cold water over the prospect of a revival, stating that there was no indication that Iran is willing to comply with nuclear commitments. In a further blow to progress, Iran is preparing to end the UN watchdog’s access to nuclear sites.

After a revival of the 2015 nuclear deal looked fairly close last week, the oil market is less convinced at the start of this week. Even so, Goldman Sachs is saying that the case for higher oil prices remains intact even with increased Iran exports only adds to the bullish tone surrounding the black gold.

Gold fundamentally & technically supported

After 2% gains last week, gold is edging higher on Monday. The precious metal is so far on track to book gains of over 6% across May in its best monthly performance since December. Falling Treasury yields and a softer tone surrounding the greenback have provided good conditions for gold prices to rise. The huge selloff in crypto land could have also played a role, with investors likely looking towards gold after liquidating positions in cryptocurrencies such as bitcoin.

Last week, gold prices pushed above the descending trendline dating back to early August. It also pushed above its 200-day moving average ad trades at the upper band of its ascending the channel dating back to April. In short, the technical picture is bullish. Whilst the RSI is in overbought territory, we could see some consolidation at these levels before gold heads toward USD1900.