Oil prices steady, gold eyes US inflation

Oil steady after rebound

Oil prices are relatively steady so far today after rebounding strongly in recent days. An improvement in risk appetite in the markets combined with a softer dollar may have contributed to the crude recovery. Especially when combined with another stall in negotiations between the US and Iran over the nuclear deal and recent warnings from OPEC+ about output. The price of Brent was trading near six-month lows prior to the rebound and that may have got traders a little nervous.

Gold steady ahead of the inflation report

Gold is relatively flat on the day after recovering well in recent days. A weaker dollar and stable US yields have aided the moves in the yellow metal but we are seeing that stall ahead of the inflation data. The near-term outlook will be heavily influenced by the August report, especially if we see another sharper deceleration in price growth. If inflation doesn’t retreat as much as expected, that disappointment could hit gold hard and potentially draw focus back towards $1,680 where it previously saw strong support.

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

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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.