Crude demand outlook takes a hit, gold stumbles on strong dollar

Oil

Oil bulls thought they were in the clear, but ‘just when they thought they were out, they pull me back in.’ ​ Oil’s true enemy is global growth fears and they are not going away anytime soon. ​ In addition to a weakening crude demand outlook, Iran reportedly gave into a ‘red line demand’ that might be a gamechanger in reviving the elusive nuclear deal. ​ The crude demand outlook is taking a big hit from elevated risks that Europe’s recession will be severe and as several Chinese companies are following the government’s advice to conserve energy.  King Dollar is also making a return so that could contribute to further momentum selling across all commodities, especially oil. ​

Gold nervously eyes Jackson Hole

Gold prices are weakening as King Dollar returns as investors brace for a potentially hawkish speech by Fed Chair Powell at the Jackson Hole Symposium on Friday. Gold will eventually settle on a trading range, but it seems the floor might be a little lower as the risks of energy and food inflation could keep the Fed remaining aggressive with rate hikes into the new year. ​ ​ ​

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Ed Moya

Ed Moya

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