Oil pushes higher, gold steady

Oil pushing higher but economic fears continue to weigh

Oil prices are rebounding today but how long will that last? The oil price was hammered once more by US banking fears earlier this month and I’m not sure those have yet receded to the extent that oil can make a full recovery without another OPEC+ intervention.

If credit conditions ease over the coming months, allaying economic fears for the world’s largest economy, oil prices could bounce back without assistance but it seems a little premature at this point. The key test will come around $78 in Brent which represents both the trend lows from December to March and last week’s peak.

Could debt ceiling talks spur a record run for gold?

Gold is marginally higher at the start of the week but it may be struggling a little more broadly. It’s failed to generate the required momentum near those record highs that have been approached repeatedly in recent weeks and I’m not sure anything has changed on that front.

We may need to see something more than slightly modest beats on inflation data to trigger a powerful run at those highs around $2,070. Debt ceiling anxiety could be that catalyst but it just all feels a bit false at this point. No one wants a US default and therefore it won’t happen. But the closer we get, the more nerves could creep in, at which point gold looks much more appealing.

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.

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.