Commodities Daily - August 22, 2019

> Oil prices slide on global growth fears amid mixed EIA report. Today will see the release of a range of August manufacturing surveys around the globe, with risks skewed to the downside following Japan's flash manufacturing PMI this morning, which showed that the manufacturing sector remained in contraction in August, although the German, French and eurozone data (just released) has turned out to be upbeat. The minutes from the latest ECB meeting could provide the market with an indication as to when and how aggressively the bank might ease policy. We think Brent is likely to break below $60/bbl today on downbeat PMIs and stock market headwinds before drawing support tomorrow from Jerome Powell's speech in Jackson Hole, which is expected to be dovish.> Gold volatility subdued ahead of Fed chairman's speech tomorrow. Today, August PMIs are coming in from across the globe. As we write, EUR/USD is up on better than expected PMI data from Germany, France and the eurozone, which is weighing on gold prices. This data has eased fears of a deepening slowdown in the European economy, which should soon see support from ECB stimulus. The minutes from the central bank's July meeting, which are due today, could shed light on what types of stimulus are being discussed. We think gold is likely remain stuck below $1,500/oz for the rest of the day, but it could draw strong support tomorrow if Fed Chairman Jerome Powell's speech in Jackson Hole is as dovish as expected.