Oil rebounds, gold tries to find support

Oil moves higher

Oil is making a comeback as energy traders focus on tightness in the diesel markets and shift the focus back to Russian energy supplies and the rising danger of nuclear war in Ukraine.  Earlier crude prices got a boost after China’s PBOC stepped up efforts to calm markets and as energy traders await China’s mass COVID testing results, which could lead to even more lockdowns.

The oil market has priced in enough demand destruction from China and crude prices should start to find strong support around the USD 100 level.


Gold prices are trying to find support here now that China’s PBOC is stepping up efforts to support the economy and as the move higher with yields continues to show signs of exhaustion.  Gold investors are hoping prices can hold the USD 1900 level heading into next week’s FOMC decision, but if risk aversion remains the dominant theme that won’t happen.

Gold is trading more like a risky asset right now than as a safe-haven and that leaves it vulnerable here.  If the war in Ukraine sees further escalations, that could be the catalyst to send prices sharply lower.

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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.