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/

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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.