Oil choppy, gold rally fizzles

Oil choppy as it establishes a new range

Another choppy session in oil markets but one in which the price is once again broadly unchanged on the day. Yesterday we saw a decent rally before gains were erased and today we’ve seen the opposite. It continues to look like oil is establishing a new range after a host of factors caused massive swings in the price including the increasingly pessimistic global economic outlook and the huge two million cut to output from OPEC+. We could see Brent stabilise between $90 and $100 now barring another coordinated SPR release.

Recovery rally short-lived

Gold prices are slipping a little again after a recovery rally on Thursday was cut short. The bullish case for the yellow metal remains weak considering the uncertain outlook for inflation and interest rates. It’s testing support around $1,620 this morning with further support potentially coming around $1,600.

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