OPEC+ Production Cuts to Reduce Oil Surplus and Boost Prices

OPEC+ announced further output cuts, which could eliminate the oil surplus that had built up in the markets. Meanwhile, gold markets have rallied, gaining over 8.9% in the past 30 days and 10.4% in the year-to-date, with the commodity finding support around $1,800/oz. Gold's correlation with the USD and real yields has been positive, and central banks have become net buyers, which could boost prices. Interest rate expectations for November 2023 are currently priced in at 3.80%, down from a peak of 5.65% just a week earlier.