Crude prices remain volatile as energy traders grapple with a deteriorating demand outlook that is still vulnerable to shortages. Supply risks and tight market conditions should give oil some support above the $80 level, but a quicker tumble to a global recession will keep prices heavy.
Oil pared gains after eurozone consumer sentiment plunged to a record low as the energy crisis and aggressive central bank tightening is killing economic growth prospects.
Gold prices are steadying as FX volatility sends the dollar everywhere. Aggressive moves higher with global bond yields are not having that much of a negative impact on gold. Gold is clearly going to become a safe-haven as the global outlook deteriorates and as Wall Street grows confident that we are nearing the peak with Treasury yields.
Gold has massive support at the $1660 level and if it can stabilize above there, prices could eventually make a move back above the $1700 level.
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