Oil remains choppy, gold may enter deeper correction

Oil generating some bullish momentum but remains lower

Oil prices are marginally higher at the start of the week but broadly speaking we’re still seeing choppy trade below the December to March range. Bank failures was the catalyst for the price breaking below here with an intervention from OPEC+ temporarily helping it to recover but more may be needed.

Despite the negative developments for the global economy and, by extension, oil prices, we are seeing signs of more promising momentum, and that has continued today. The price dipped earlier in the session but once more rebounded above the previous lows. This has continued the trend of higher lows since 4 May, which could be a bullish signal, especially if confirmed by a break above $77.50 in Brent.

Gold potentially eyeing a deeper correction

Gold is marginally negative today but as is the case elsewhere, the moves today are so small I don’t take them too seriously. Nothing has changed for the yellow metal, $1,960 remains a key zone of support, a significant break of which could signal a much deeper correction is on the cards.

The rally has lost all momentum, something that started when it came within a whisker of record highs earlier this month. This may just be a temporary correction but after such a strong rally since March, the question is how much deeper it will get, with $1,940 being another interesting level below followed by $1,900.

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.