Oil Steady as Laura Wreaks Havoc, Gold Eases

Oil steady as Laura hammers Gulf Coast

Oil prices are steady around the range highs this week as Hurricane Laura causes havoc on the Gulf Coast.

The storm, referred to as “unsurvivable” by the National Hurricane Centre, has already been raised to category 4 and isn’t far from category 5. The destruction is could cause is considerable.

It may therefore be surprising that oil prices haven’t risen further given the forced closure of production and refining facilities. Perhaps traders are waiting to see what the damage is but the limited impact so far may also just be a reflection of the current oil market dynamics. Temporary disruptions are easily covered.

Gold eases ahead of Powell comments

Gold prices are easing off again as we await Jerome Powell’s appearance.

The yellow metal jumped off its lows around $1,900 on Wednesday before running into some resistance around $1,960 as US yields slipped off their highs ahead of the event. There seems to be very high expectations so whatever happens, we’re going to see some volatility in these markets.

I fear Powell won’t be able to keep up and traders will make their frustrations know with a spike in yields, lifting the dollar in the process and whacking gold again.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam