Oil extends gains

Oil prices rally

Oil prices are continuing to edge higher as China further eases lockdown restrictions in Shanghai. The lockdowns in China have countered some of the supply shortages in recent months and stopped oil prices from rising too far but with restrictions lifting and the EU closing in on a Russian import ban, we could see Brent back at the early March highs. This doesn’t bode well for the global economy or inflation and if anyone is hoping OPEC+ step in this week, they’re setting themselves up for disappointment.

Gold edges higher

Gold is a little higher again at the start of the week, buoyed by some softness in the dollar which has continued to give back some of the huge gains of recent months. Whether the yellow metal can sustain this ultimately depends on whether yields will continue to edge lower. That seems unlikely over the medium term but they have recently eased off. Gold faces initial resistance around USD 1,870, with USD 1,900 a big test above that.

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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