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Why crude could see a correction and gold return to colour

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The last few weeks have seen a big rally in crude futures markets. But Saxo's Ole Hansen warns that the physical market, particularly the North Atlantic basin is weak with cargoes left unsold. He says there is a risk that the upside may now be in need of a correction. He also warns that US shale production could increase, adding more supply.

Moving to gold and although the US dollar has weakened over the last few weeks, there hasn't been much positive impact on the price of this precious metal. Hansen explains that rising bond yields in the US are partly to blame. He says speculative investors have been reducing their long positions. 

Thanks to strong global inventories, the price of crops like corn, wheat and soya have been under pressure. Ole says the net short has now reached a record. But he says investors must keep an eye on technical levels as he believes support in the market may be found, particularly if there are weather changes.