Oil running on empty gold eyes FOMC

Oil running on fumes

The oil price recovery may be starting to run on fumes after OPEC+ confirmed what markets had been pricing in over the last couple of weeks; that omicron won’t have an overly detrimental impact on crude demand. In continuing its 400,000 barrels per day, monthly increases, the group offered further comfort to investors that the economic impact is likely to be minor and short-lived.

The question now is whether the group can meet quotas which have reportedly been a challenge for certain member countries. That, along with the promising demand outlook, should keep prices well supported even if near-term indicators may be hinting at a little exhaustion in the rally.

Gold eyeing key resistance ahead of Fed minutes

Gold prices are pushing higher again on Wednesday ahead of the Fed meeting. The yellow metal fell hard at the start of the week but has been trying to recover since after finding support around USD 1,800.

If it can generate fresh upside momentum, challenges remain around the same key resistance levels. Just as we saw prior to the breakout in November, USD 1,833 looks key and failed attempts late last week and early this confirmed that. If it breaks above here, we could see new momentum which could propel it higher. Whether it will get that from the minutes later is another thing. The ADP has given it a nudge in the right direction though.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.