Oil slumps on demand outlook, gold hurt


Crude prices are struggling as China stands by its zero-COVID policy and as global central bank tightening is crushing economic activity. ​ Central banks are signaling that tightening is quickly cooling their respective economies, which means the short-term crude demand outlook will probably get slashed. ​ ​

Oil is battling both a weakening global economic outlook and a surging dollar. ​ It seems these bearish drivers won’t be easing up anytime soon and that could mean WTI crude could be vulnerable to last week’s low.


Everything seems to be going against gold right now. ​ The Fed aftermath is leading to pain for bullion as Fed Chair Powell has signaled rates will be much higher. The peak in the dollar was potentially going to be put in place but Fed Chair Powell said they are worried more about doing too little on inflation than too much.

Gold could be in trouble here as the dollar could outperform for the next month. ​ Gold is hovering right around key support which means if prices break momentum selling could be intense. ​ The $1600 level might not provide that much support, which means bullion prices could weaken towards the $1575 area.

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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.