Oil and Gold Pare Losses Ahead of NFP

Oil correction may have further to run

Oil is staging a bit of a recovery after tumbling in the middle of the week.

Once again, we’re facing a market that was struggling to maintain upside momentum and a few headlines provided the catalyst for some profit taking. The consolidation could have continued for longer but once a couple of technical levels fell, it’s just accelerated from there.

WTI has since found some support just above $40 but $39 is arguably more significant support. It may now find some resistance around $42.

Strong jobs report could spell trouble for gold

Gold is paring losses this morning, having come under significant pressure over the last few days.

The US PMI report on Tuesday ruined its attempt to break $2,000 again, with the dollar jumping on the back on the report. Gold now finds itself back around the middle of its $1,900-2,000 range ahead of the jobs report, which could be the next catalyst for the yellow metal.

A strong report could see the dollar spike again, with the sell-off currently losing momentum, and spell trouble for the yellow metal.

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