Oil edges lower, gold consolidates

Oil pares gains but remains in consolidation

Oil prices are slipping a little on Tuesday after rebounding at the start of the week. The threat of European sanctions on Russian oil remains an upside risk for crude prices despite the firm opposition in the short term from certain member states. The release of reserves has helped take some of the pressure off amid disruptions to Russian supply but this is still a tight market and greater risks continue to be to the upside. That said, the trend in recent weeks has broadly been one of consolidation, albeit following an extremely volatile period and what we’ve seen so far this week doesn’t suggest anything has changed.

Gold slips back

Gold continues to consolidate above USD 1,900, with the yellow metal making small losses on the day while lacking any real longer-term direction. That case could be made across various asset classes at the moment which is perhaps a sign of the limbo investors find themselves in; recession risks but a hot economy, peace talks without any sign of peace, etc. It’s interesting that the rallies are failing a little earlier each time over recent weeks which could be a small sign of weakness but as it is, there remains plenty of appetite for a safe haven and inflation hedge.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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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