Oil higher on demand optimism, gold hovers near highs


Crude prices are higher as economic optimism grows for not just China, but also the eurozone. The oil market is digesting a global slowdown that might not be as bad as feared. ​ Energy traders still believe that OPEC+ will do whatever is needed to keep prices supported and that includes more production cuts this quarter. ​

Oil seems like it wants to waver right now until we get a better handle on China’s Covid surge. ​ As China battles an unprecedented surge in Covid cases, everyone wants to see if travel continues to rebound. ​

Oil got a minor boost as the pared gains after Fed Chair Powell did not deliver his best hawkish hits at a Riskbank event. ​ ​


Gold prices are holding near recent highs as traders grow optimistic the Fed won’t be able to follow through with its hawkish threats. Fed Chair Powell’s appearance at a Riksbank event was really a non-event as he didn’t focus on monetary policy. The next big move in gold seems like it will have to wait until this week’s inflation report. ​

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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.