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Oil rebounds, gold tries to form a range


Oil prices rallied after another round of impressive US economic data boosted optimism for an improving crude demand outlook. The US economy still looks good and China’s economy could be ready to bounce back fairly soon.  Momentum from yesterday’s bullish EIA crude oil inventory still lingers, but technical resistance at the $90 a barrel level is capping WTI’s rally for now.

OPEC Secretary General Al Ghais reminded energy traders that OPEC could be in a position to cut production if needed.  OPEC is not going to let this pullback with oil prices continue much further.


Gold is locked up in battle with King Dollar. The US dollar might continue to strengthen if US economic data continues to surpass expectations.  After breaking below $1800, gold has been struggling to regain its footing.  Aggressive rate hikes globally, today from the Philippines and Norway, are keeping the pressure on non-interest-bearing gold.

Gold looks like it could be forming a trading range between $1750 and $1800 as investors will slowly refrain from massive positioning until we get beyond the Jackson Hole Symposium.  Jackson Hole might not trigger any major surprises as the Fed seems locked into its data-dependency mode.

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.

Ed Moya

Ed Moya [4]

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya