Oil rises on SPR, gold gains ground

Oil settling into a range

Oil prices are higher on Thursday which comes after President Joe Biden confirmed the release of the final 15 million barrels from the SPR, as part of the 180 million previously agreed, and warned more could follow. That was already priced into the markets though and the price has fallen quite heavily over the last week and a half. Brent seems to now be settling into a new range, perhaps between $90 and $100, a level most may be relatively comfortable with.

A good day for gold

Gold is making decent gains after earlier testing the September lows around $1,620. The yellow metal is being lifted by a weaker dollar and lower yields but the question remains how sustainable is it? I’m sure there are many doubters considering the lingering concerns about inflation and interest rates and that may make any gains hard-fought. If it breaks below $1,620, we could quickly see $1,600 come under pressure.

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Craig Erlam

Craig Erlam

Former 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.