Oil prices fall, gold awaits Fed decision

Stalled recovery

Oil prices are slipping again today after recovering strongly from the lows over the last couple of days. There’s still a lot of lost ground to make up which may highlight the apprehension behind the recovery as well as the potential longer-term consequences for the economy.

Time will tell how significant an impact that will have but the fact that we’re already seeing profit-taking isn’t a great signal. That said, we’re also seeing the recovery in stock markets stalling ahead of the Fed decision so perhaps this is having a similar impact on crude as we await their assessment of the situation.

Pause ahead of the Fed

We’re also seeing a pause in the gold correction ahead of the Fed later in the day. It’s gone from a rare foray above $2,000 to pulling back almost 4% while remaining well above its pre-banking crisis lows. A hawkish Fed could see it extend the decline, with $1,900 being the next big test below, followed by $1,860.

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

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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