Oil prices rebound, gold

Oil

Crude prices are still rebounding from yesterday’s Saudi denial that OPEC+ was considering an output increase. Oil is having a tug-of-war with China’s Covid demand concerns getting countered with what appears to be a motivated Saudi Arabia to keep the oil market tight.

White House official Hochstein said that the US can still manage any energy emergency with the SPR. ​ He also noted that it will be opportunistic about refilling the SPR and that they could look to immediately repurchase oil when prices are in the $70 per barrel range.

The recent oil price slide was overdone and given global economic activity excluding China won’t completely fall off a cliff, prices should continue to stabilize here.

Gold

Gold got a little boost from the weaker dollar but that appears to be fading quickly. Gold should have a hard time rallying here as the dollar seems poised to find some support here. ​ The Fed is likely to stick to the hawkish script for a while and unless we see a major improvement in China’s COVID situation, gold should struggle to muster up a meaningful rally.

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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. 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. Most recently 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 and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya