Commodities Daily - June 27, 2019

> Oil gains on bullish EIA report amid worrisome comments from Trump ahead of the G20 and stock market declines. Reuters has reported that Trump and Xi will meet at the G20 at 5:30 on Saturday morning Moscow time, which means that global stock markets will not have the opportunity to react to the outcome until Monday. This morning, the South China Morning Post claimed that China and the US have agreed on a tentative truce in their trade war for six months to provide breathing room for renewed negotiations. Today, investors will eye US GDP, jobless claims, pending home sales, and the latest Fed banking stress test results. We think that Brent is likely to hover above $66/bbl for most of the day today after dipping below this mark in early Asian trading.> Gold prices correct ahead of G20 summit. Weak US economic data supported gold until late in the session yesterday. But gold ended 1.0% lower on increased risk appetite. US Treasury Secretary Mnuchin said that a US-China trade deal was 90% finished, which led to a correction. We expect more positive comments from officials before the Trump-Xi meeting, so we see further downside for gold over the next few days.