Oil Eases After Laura, Gold Eyes $2,000

Oil eases off its highs

Oil prices are flat on Friday, having pulled off their highs a day earlier as US refineries were spared the destruction of Hurricane Laura which made landfall on Thursday morning.

While there were shutins as Laura approached, the facilities should be up and running quickly after avoiding any major damage meaning output is only marginally affected. The impact could have been much greater, although coming at a time when there’s not exactly a shortage, prices had only risen a little in anticipation.

WTI is back at $43 and Brent at $45.50, both a little below their 200 day simple moving averages.

Gold eyeing $2,000

A choppy couple of days for gold prices but they have resumed their push higher on Friday, supported by a softer dollar and real yields edging lower.

The greenback is now testing its August lows and could resume the downtrend if we break below. For gold, $2,000 is key, a break above here could spur more buying while another failure could see the yellow metal consolidate.

Longer term, it’s hard not to be bullish gold as the Fed is not tightening any time soon and if anything, more stimulus or yield curve control may be necessary. As ever, patience may just be key.

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 SKY News. 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
Craig Erlam

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