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Oil rallies as China eases covid rules, gold shines

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Oil

Crude prices rallied as hopes grow that China will continue to loosen their COVID rules and on expectations that OPEC+ will do whatever it takes to keep oil prices supported. ​ Energy traders are eagerly awaiting an OPEC+ decision that could see them keep output steady or deliver a small cut. If China didn’t signal a slight covid easy shift, the probability of a production cut would have been much greater. ​

Oil should find a range as we await the OPEC+ decision. ​ Key levels for WTI crude include major resistance at $84.55 and key support at the $81.20 level. ​

Gold

Gold prices catapulted above the $1,800 level as inflation cooled and on hopes that the Fed could soon be done tightening. ​ Tactical traders continue to send the dollar lower and that is good news for bullion. Gold had strong resistance at $1800 and if it can hold that post-NFP, bullish momentum could be strong. ​ Leading labor indicators have been mixed but overall support a weaker pace of hiring. ​ Unless the nonfarm payroll report shows companies are clearly still in hiring mode, gold could remain in rally mode. ​

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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.
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