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Crude rallies on China reopening hopes, gold pares gain after JOLTS data

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Oil

Crude prices jumped after rumors that China was preparing for a full reopening in March 2023. Oil is looking bullish again as it did a decent job holding onto gains despite a strong reversal with king dollar. ​ Risks to energy supplies remain elevated after reports that Iran was planning an attack on targets that include Saudi Arabia and Northern Iraq. ​

The news was not all bullish for crude prices as the Atlanta Fed GDPNow lowered their GDP forecast from 3.1% to 2.6%. ​ The global economic outlook remains very fragile to a swathe of risks and that should keep crude demand forecasts vulnerable to getting slashed, but for now, energy traders remain fixated on how tight the market remains.

Gold

Gold prices pared gains after the JOLTS report rattled December Fed downshift calls. Yields popped and the dollar turned positive after September job openings came in almost a million over the consensus estimate. ​ Gold’s rally was gaining momentum on hopes that the Fed was going to deliver a 75 basis point hike and a dovish press conference. After today’s labor data, it seems the press conference might have to be hawkish. ​

Gold has been trying to stabilize over the last few weeks and that could get tested as the latest data supports the idea that the Fed might need to raise their inflation forecasts. ​ ​

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Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. 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. Prior to OANDA 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, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
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