Oil volatility likely to continue
Another volatile start to the week in oil markets, where Brent and WTI now find themselves around 3% higher on the day. This comes after WTI fell close to $70 a barrel, the level at which the White House previously indicated it will begin refilling the SPR which could provide some initial support for the price.
The outage on the Keystone pipeline between Canada and the US could be offering further support for the price, as could renewed Russian threats to cut supply in response to the G7 price cap and refusal to sell to any participating countries. I expect prices will remain volatile against the backdrop of these and many other factors.
Choppy ahead of the Fed
Gold remains volatile ahead of the inflation data and Fed decision this week. It’s continuing to see resistance around $1,810 on rallies but there’s clearly still plenty of bullish appetite as is evidenced by the series of higher lows over the last few weeks. It’s seeing support today around $1,780, where the yellow metal saw resistance last month during the initial surge. These levels may remain key in the run-up to tomorrow’s inflation release.
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