Back into range
Just as oil prices appeared to be gathering some momentum, Powell put an abrupt end to hopes of a breakout on Tuesday and sent them back to the middle of their recent range. Optimism over the Chinese recovery is one thing but if large parts of the global economy are going to stall or go into recession, oil prices are going to struggle to surge higher. Barring, of course, interventions on the supply side which we’ve heard relatively little about recently. Once more, the jobs report on Friday could be a major driver of sentiment over the short-term.
Holding near key support
This is probably going to be one of the most hotly anticipated job reports in some time and it could have significant consequences across various asset classes. Gold is always very sensitive to developments on this front and that will be especially true after Powell’s comments.
The yellow metal got crushed by his comments on Tuesday and may be sensitive to them again today. But it’s also now vulnerable to Friday if things don’t go its way, with it now lingering close to $1,800, the upper end of a big support region that, if broken, could signal troubling times ahead.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/
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