Oil dips under USD 90, gold awaits NFP

Oil slips below USD 90 as recession fears mount

Oil prices are marginally higher on Friday after spending most of the week on the decline. It hasn’t been the most bullish week of headlines for crude, whether that be all of the recession chat (most notably from the UK), the new OPEC+ deal or the EIA inventory build. The headlines have all been negative and so the price has continued to fall.

WTI has broken below USD 90 to trade back at levels seen before the Russian invasion of Ukraine. Clearly, everyone is taking the threat of recession far more seriously as we’re still seeing a very tight market and producers with no capacity to change that, barring a couple.

Gold eyeing USD 1,800 ahead of the jobs report

It’s been another very good week for gold, despite Fed policymakers coming out in force to try and spoil the party. It seems traders are not particularly interested in being told that rates won’t start falling towards the middle of next year or could still rise by 75 basis points in September despite the shift to data dependency. I mean, considering who’s been right this past 12 months, I can hardly blame them. But gold has certainly benefited and the next challenge is USD 1,780-1,800 which is putting up quite the fight.

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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