GOLD & CRUDE OIL TALKING POINTS:
Gold prices drop with stocks as the US Dollar gains on haven demand
Crude oil prices flirt with bearish reversal as US-China tensions swell
Stock index futures signal risk-off bias likely to carry into the week-end
Gold prices fell alongside stocks as escalating US-China tensions soured market sentiment. The risk-off backdrop drove haven demand for the US Dollar, which undermined the appeal of anti-fiat alternatives epitomized by the yellow metal, driving it downward. Crude oil prices likewise fell as the defensive backdrop swept up the range of cycle-sensitive assets.

The US was reported to be readying a federal contract ban on companies using Huawei technology, and also brought Magnitsky Act charges against several Chinese officials over alleged human rights abuses in Xinjiang province targeting the Uighur community. Reports of swelling Covid-19 cases in the US probably compounded negativity.

The downbeat mood extended from Wall Street into Asia-Pacific trade and more of the same looks likely ahead. Stock index futures tracking top European and US benchmarks are pointing sharply lower, suggesting liquidation will carry through into the week-end. A sparse offering on the economic data docket offers few roadblocks to derail established momentum.