Oil has rebounded slightly, but gold has slipped as we are seeing an improvement in risk appetite on Monday.
Oil recovers as the dust continues to settle
Oil prices are rebounding a little on Monday, up a little more than 1% in line with the broader risk rally. It’s been a volatile few weeks for crude, caught up in the banking storm as investors are forced to scale back their expectations for the economy which, in turn, has weighed heavily on demand prospects.
But with sentiment slowly improving and yields inching cautiously higher, so too are oil prices. It may take some time for the dust to settle and prices to fully reflect the new outlook after such a turbulent period which should ensure volatility remains for now.
Double top forming in gold?
Gold prices are slipping amid higher yields and an improvement in risk appetite. The yellow metal briefly surpassed $2,000 again on Friday before ending the day lower and we appear to be seeing further profit-taking today. If turbulence in the banks subsides, we could see gold give back some of its recent gains and from a technical perspective, the two failed runs at $2,000 has left us with a possible double top forming, with the neckline around $1,935.
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