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 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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