Oil edges higher, gold struggling

Edging higher

Oil prices are a little higher at the start of the week with a few factors potentially behind the move. Turkey’s decision to temporarily halt flows to the Ceyhan terminal may have lifted prices a little given the uncertainty around the situation, although, with reports of no damage to pipelines, the impact should be marginal. ​

There is also a growing expectation that China will bounce back strongly following the decision to scrap zero-Covid restrictions which will spur more demand over the course of the year and boost prices. As the world’s largest importer and second-largest economy, its outlook is a huge factor in the oil market. The final reason could be more technical, with the price having fallen quite significantly over the last week or so.

Into correction territory

Gold has been left licking its wounds after sliding almost 5% from its highs towards the end of last week. The yellow metal was already looking quite overbought and was struggling for momentum on its most recent surge and so was potentially primed for a correction but the US data certainly finished the job.

It’s trading a little higher today but the rebound has been weak so far and after such a strong recovery since early November, there could still be a little further to run. The next key level of support below could be around $1,820-$1,830.

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.

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.