Oil hovers around USD 100
A second weekly decline in oil prices has eased some of the pressures on the global economy going forward, thanks to a combination of factors including huge SPR releases and Chinese lockdowns. Still, at around USD 100 a barrel, prices are very high and there remain significant upside risks going forward.
How prolonged and widespread Chinese lockdowns become could be a key factor in the short-term, with it being such a large consumer and some cities with very few cases already imposing harsh restrictions. The zero-Covid approach in Beijing could weigh heavily on economic activity, with the hope being that a quick eradication can once again see it rapidly spring back. If not, it could help keep a lid on oil prices.
Gold consolidates further
Gold is trading around the same level it was yesterday, the day before that, the day before that and so on. Despite the spike in volatility seen elsewhere this week as a result of the hawkish Fed shift, gold has been unmoved. We continue to see consolidation in the yellow metal, with the daily ranges tightening rather than widening as you may have expected. There are multiple forces at play here but traders are seemingly clinging to their traditional inflation hedge and safe haven.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/
Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at firstname.lastname@example.org. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.