OPEC raised its demand forecast by 190,000 barrels

OIL 

Oil surged 6.5% this week, boosted by an upbeat EIA weekly report along with an upwardly revised demand outlook from the IEA that added to the upbeat tone in the market. U.S. Energy Information Administration data showed nationwide crude stockpiles dropped by 5.9 million barrels from the previous week to 492.4 million barrels. The decline was bullish against an estimate from the American Petroleum Institute showing a 3.608 million draw from inventory. Furthermore, OPEC raised its demand forecast by 190,000 barrels per day from its March estimate, expecting consumption to average 96.46 million barrels per day this year, citing economic stimulus programs and a further easing of COVID-19 lockdown measures. against this backdrop, Brent crude surged to one-month highs around $67.35 on Friday. 

GOLD 

Earlier in the week, gold prices struggled for direction before staging a spectacular rally on Thursday. The bullion surged to seven-week highs around $1,775 as benchmark U.S. bond yields pulled back and rising U.S. tensions with China and Russia boosted the metal’s haven appeal. Down the road, the bullion could see more upside momentum as the dollar index loses its strength further because the Fed indicated that rates aren’t going higher anytime soon. Rising coronavirus cases in many countries adding to a more cautious tone among market players as well, lifting the safe-haven metal.