Home/Commodities/Metals/Newsfeed/Oil

Oil rebounds, gold softens

Share Print 0

Oil

Crude prices are rising on hopes China’s demand situation will quickly improve and on concerns that supplies will be kept tight by both Russia and OPEC. China’s reopening is coming; it won’t happen overnight, but it will provide a major boost to demand in the outlook next quarter. ​

Oil has too much support at the $70 level, which should suggest the recent change in China’s approach to fighting COVID could support a rally towards the $80 level. ​

Gold

Gold prices are settling below the $1800 level as traders await both a key inflation report and the FOMC decision. ​ Gold has had a strong performance recently as traders widely believe that inflation has peaked, while some are hoping that a soft landing is still possible. ​ The market is pricing in rate cuts next year and that is also providing some ammunition for gold bulls.

Gold should have a strong performance over the first half of next year as the Fed would not likely resume tightening if inflation remains high as growth turns negative. ​

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

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.
, , , , , ,
Back to Top