Oil well supported, gold dips

Hard to make a bearish case for oil

Oil prices are continuing to rise at the end of the week, as extreme tightness in the market was compounded by the US driving season, Norwegian oil strikes this weekend and a near-fatal blow to the Iranian nuclear deal. The gains could have been more significant if not for a setback in the reopening of Shanghai as fresh restrictions and mass testing were undertaken.

It’s hard to make a bearish case for oil prices at the minute and OPEC+ has shown itself incapable of making a difference. Those that can pump more are holding back while others are being given higher quotas they simply can’t fulfill. Meanwhile, oil prices continue to march higher.

Gold slips after inflation data

Gold has slipped after US inflation outperformed but remains well within the range of recent weeks. A stronger reading could be a massive blow to risk appetite and be seen as further evidence of the job the Fed has to get price pressures under control. Which means yields could jump again along with the dollar, pressuring the yellow metal.

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 info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.