Oil and gold slide, bitcoin resilient

Oil slips further amid economic concerns

Economic woes continue to weigh on oil prices, with Brent and WTI off around 1% again today and trading at pre-invasion levels. With more and more central banks being forced to take extraordinary measures no matter the cost to the economy, demand is going to take a hit which could help rebalance the oil market.

Of course, OPEC+ has made its position on this perfectly clear and should it wait until the next scheduled meeting on 5 October, I expect there’ll be a big discussion about further cuts.

Rising yields hit gold prices again

Gold hit new two-and-a-half-year lows this morning as the dollar got off to a strong start to the week. Rising yields around the world continue to weigh heavily on the yellow metal, despite the risk-aversion we continue to see. Once we see yields stabilise, we may see more appetite for gold but in the meantime, it just isn’t there. It saw some support this morning around $1,625 but if yields keep rising, I can’t imagine that will hold for long.

Showing resilience once more

Bitcoin is once again showing some resilience despite the mood in the broader markets being quite pessimistic. It’s flat on the day after making decent gains earlier in the session. The backdrop remains very challenging for risk assets though and despite the resilience we’ve repeatedly seen, it could still come under further pressure putting substantial support around $17,500-18,500 at risk.

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Craig Erlam

Craig Erlam

Former 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.