Oil steady, gold edges higher

Oil steadies amid bullish OPEC forecasts

Oil prices are higher once more on Tuesday, with Brent and WTI up close to 1.5%. Little has changed over the last week on the oil front, with the price appearing to stabilize after a pretty turbulent period.

OPEC released its 2022 oil market report on Monday and sees demand continuing to grow in the coming years. That’s despite the economic headwinds in the near term that drove its controversial two million barrel cut last month. Among other things, the report highlighted the need for more investment, the strengthening of demand due to the shift from focusing on the transition to energy security, and a much later peak in demand.

Can gold break higher?

We’re seeing a modest rally in gold on Tuesday, the day before the Fed decision when traders are hoping for some dovish treats. That hope hasn’t yet filtered through to the gold price which has fallen back towards $1,600 in recent weeks. The yellow metal has been hammered by rapidly rising interest rates and traders are increasingly expecting the Fed to join the RBA is moving towards a slower pace of tightening. Any indication that will come in December could be supportive for gold, although considerable uncertainty remains.

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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.