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Oil dips as Iran/US talks progress

The oil price rally has hit a tentative wall as ian tensions cannot overcome the prospects of additional Iranian supply and possibly more crude output from OPEC+. Yesterday, Iran Foreign Ministry spokesman Khatibzadeh noted that significant progress has been made in reviving the 2015 nuclear deal. Energy traders are looking at a long list of geopolitical risks and see the Biden administration being extra motivated to make a deal with Tehran.

Crude prices still seem like they have a good chance to make a run towards the USD 100 level, but it might take a major escalation by  for that breakout to happen.  The deployment of n troops to two regions in e and prospects of various sanctions against  will likely lead to further tense moments in the coming days.

Whatever dips happen with crude prices will likely be short-lived.

Gold

Gold is having a great month as investors scramble for both safe-havens and inflation hedges.  -e tensions continue to intensify and that is driving a massive move across commodities.  The likelihood of a regional war seems high and that will likely keep inflationary pressures elevated for much of the year.  Bullion seems like it is taking a little break right now, but investors will soon be saying, "I love gold" as geopolitical and growth concerns will drive safe-haven demand.

Gold has tentative resistance at the USD 1920 level, but beyond that lies the USD 1950 area.