FXStreet notes that crude oil took two big hits last week – stalled US fiscal stimulus talks and President Trump taking ill with COVID-19. The latter appears to be an exogenous shock and strategists at OCBC Bank expect Brent Oil prices to recover to its $40-$43/bbl range.

“ Brent fell 7.2% across last Thursday and Friday and closed below the critical $40 handle on Friday. The US President taking ill with COVID-19 sent Brent spiralling on Friday but we view that as a one-off exogenous shock that impacted sentiment more than fundamentals.”

“We expect Brent to return to the $40-$43/bbl range within this week.”

FXStreet notes that gold (XAU/USD) has retreated from the highs above $1,900 and trades just below that round number. All in all, the yellow metal is likely to stay supported until more clarity on Trump’s health condition emerges, per OCBC Bank.

“The rising uncertainty across the global economy lifted gold prices back to the $1900/oz level. We initially thought that since gold broke below that critical support level of $1900/oz, the precious metal would make a quick break for the $1800/oz level. The price movements last week, however, show that there remains buying interest at the $1800-$1900/oz level.”