Oil rises on OPEC+, gold gains ground

Oil prices are rising on Wednesday, clawing back some of the losses from a day earlier that came following reports that OPEC+ is planning to suspend Russia from the quota system due to the sanctions against it and the EU embargo. The move could see output increase faster by other members that have the capacity to do so, most notably Saudi Arabia and the UAE, and alleviate some of the pressure in the oil market. Tomorrow’s meeting has suddenly gone from a likely non-event to the most hotly anticipated this week.

Gold gains along with USD and yields

Gold is up around half a percent despite the dollar performing well on the day and yields edging higher. The yellow metal fell back below USD 1,830 earlier in the session but has rallied strongly since to trade around USD 1,850 once more. This could be an encouraging sign, coming at a time when it was appearing to struggle to capitalise on the moves since mid-May. A move above USD 1,870 would further cement the recovery, at which point USD 1,900 will be key.

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

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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