Oil edges higher, gold remains supported at $1960

Oil edges higher after fresh warnings from Saudi Energy Minister

Oil prices have nudged higher today following another warning from Saudi Energy Minister Prince Abdulaziz bin Salman that short-sellers will be “ouching” as they did in April. “Watch out” was the message ahead of the next OPEC+ meeting early next month in what may be a sign that the group is considering cutting output once more amid a more bleak global economic outlook.

Of course, actions speak louder than words and traders haven’t been overly deterred by his words, despite the group having announced two sizeable cuts in the last year that briefly shook the markets. Crude remains below the levels of December to early March and then April, but recent momentum has been more bullish. A break of $77.50 in Brent could signal a sentiment shift in oil markets after repeated wobbles following the bank failures in the US.

Gold still seeing support around key support

Gold is relatively flat on the day but recent momentum has clearly been more bearish, with $1,960 representing a big test to the downside. We’ve seen it run into support around here this past week and it has been a notable level previously as well including late March and early April, as well as early February.

A break below here could be a very bearish development, with $1,940 and $1,900 then being the standout potential support zones below.

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

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.