Oil range trading, gold rebounds

Back in the middle of the range

A decent week for oil prices comes to an end slightly in the red, perhaps a sign of some profit-taking kicking in. Prices have fluctuated in a range for months now and the current price sits more-or-less in the middle of that range. While traders are becoming more optimistic about the Chinese recovery, the risks to the global economy may be increasing as interest rate expectations have risen.

The range does appear to be gradually tightening but remains quite large and there appears little appetite for a breakout at this moment in time. Perhaps the US data over the next couple of weeks will change that.

Paring losses ahead of big week for US

Gold is bringing an end to a run of four successive weekly declines, rising around 2% over the last five days after running into significant support around $1,800. This followed a near-8% decline from the highs at the start of February so could simply be a case of profit-taking ahead of a big week of US data and Fed speak. The $1,780-$1,800 support below remains crucial and should it break over the next couple of weeks, it may well signal a much more hawkish shift in US monetary policy.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

Latest posts by Craig Erlam (see all)