Oil and gold come under early pressure

Oil in the red despite wider market optimism

Interestingly, rising stock markets and a softer dollar are not providing a boost for oil prices, which are trading a little lower as Covid fears dominate.

With global deaths about to pass one million and case numbers across Europe rising even prior to the high risk winter period, the demand outlook for crude is looking challenging. Stable prices for now may be encouraging but the risks remain to the downside, the only opposing factor being OPEC+ following the warnings from the Saudi Arabian Energy Minister.

Gold stable but risks skewed to downside

Gold is another who’s risks appear skewed to the downside, with a softer dollar providing little respite on Monday.

The yellow metal has come under pressure in recent weeks and while it has stabilized a little, there doesn’t appear to be much appetite in the near-term. US real yields have been inching higher which may be contributing to the downward pressure on gold prices and may be one to watch if that gathers any real momentum.

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