Oil on the move, gold eyes CPI

Bouncing back

Oil prices are advancing again on Tuesday, with Brent approaching $80 a barrel and WTI nearing $75. This comes amid further relaxations of Covid curbs in China, the threat of lower Russian output in response to the G7 price cap, an outage on the Keystone pipeline in the US, and the promise of US purchases around $70.

That’s a lot of supportive factors for the price even in what appears to be an environment tilted towards oversupply. Suddenly there appears more upside risk than downside which could keep prices slipping below $70 for the foreseeable future.

Awaiting CPI data

Gold remains in consolidation ahead of the CPI data. Last month’s release helped drive gold prices higher on the back of a promising Fed statement and jobs report. Of course, recent data hasn’t been quite so bullish for the yellow metal but a weaker inflation reading today could get it back on track ahead of tomorrow’s Fed decision. The key level to the upside remains $1,810, with gold seeing some support around $1,780.

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Former Craig

Former Craig

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.