Daily Alert – Tuesday 28th April 2020: Easing of Covid restrictions boosts sentiment, but not for oil
The markets were broadly risk-on yesterday with equities and the US10Y yield rising and GOLD falling. Oil took another leg lower and I went short just before the close. Helping the trade was the announcement by USO, a major oil exchange-traded fund, that they would exit all June future contracts by the middle of this week to avoid the potential negative pricing just before settlement that we saw last week when the May contract ended.
The GOLD dip maybe a good setup for further advances in pricing.
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