Oil lower, gold shines


Crude prices declined as energy traders quickly abandoned bullish bets that we will see a price spike once the Russian cap on crude oil would be put in place. ​ It seems oil markets are only caring about a steady deterioration with the demand outlook. The latest EIA crude oil inventory report showed inventories dropped less than expected and exports tumbled. ​ Exports fell 30%, which is the lowest level since October. ​ Gasoline inventories are rising as demand struggles. ​ This report shows the economy is clearly weakening and does not give energy bulls any reasons to buy into this weakness. ​


Everything is starting to go gold’s way; the dollar is softening, recession risks are rising, and geopolitical tensions are escalating. ​ Non-interest-bearing gold will continue to thrive if Treasury yields continue to slide. ​ This is a good environment for gold as safe-haven flows seem like they will be the theme of the new year. ​ Gold will likely trade back and forth through the $1800 level leading up to next week’s FOMC decision. ​

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.

Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.