Gold prices continued to rise as front-end US Treasury yields declined, touching the lowest level in a month. Not surprisingly, this bolstered the relative appeal of non-interest-bearing assets including the yellow metal. This followed comments from Chicago Fed President Charles Evans. He struck a relatively reserved tone, saying the envisioned 2-3 rate hikes this year. That is bit dovish relative to the status-quo expectation of three increases, which has lost the ability to impress judging by the aftermath of last week’s FOMC meeting.

Comments from US central bank officials remain in focus in the day ahead. Bill Dudley, Esther George and Loretta Mester – Presidents of the Fed’s New York, Kansas City and Cleveland branches, respectively – are due to speak. Mester and George tend to lean to the hawkish side of the spectrum while Dudley represents the center ground. He is also a voter on this year’s FOMC committee. If his remarks sound timid – echoing those of Evans – gold may extend its advance. A confident, pro-tightening posture may cap gains however.

Crude oil prices fell alongside share prices as expected, with risk appetite soured across financial markets after the communique from a meeting of G20 finance ministers and central bank governors over the weekend conspicuously omitted a previously standard opposition to protectionism. The change was reportedly made at the behest of US Treasury Secretary Steven Mnuchin. This stoked fears about the threat posed to the international commercial order – and thereby global growth – by the Trump administration.

Looking ahead, weekly APIcrude oil inventory data enters the spotlight. Traders’ supply outlook remains clouded as the OPEC supply cut scheme and swelling swing supply, particularly from the US, vie for influence. The latter appears to be gaining the upper hand: CFTC COT data showed large speculators cut long WTI futures bets by the most in at least 11 years last week. Meanwhile, short exposure grew by the most in nearly five months. Another increase in stockpiles may encourage more of the same, sinking prices.