Oil showing volatility, gold eyes Fed

Huge uncertainty for oil

There remains immense uncertainty over the outlook for crude demand and supply which is leading to plenty of volatility in oil markets. The price has rebounded in recent days after WTI fell close to $70, the level at which the White House has previously indicated it will start refilling the SPR following a year of repeatedly drawing it down.

With China finally navigating away from zero-Covid, which alone brings huge uncertainty for next year, the global economy slowing, Russia continuing its war in Ukraine, and OPEC+ seeking to maintain balance, I don’t expect volatility to subside in any significant way soon.

Gold eyeing Santa rally

Gold is paring its post-CPI gains ahead of the US interest rate decision. It finally broke $1,810 but failed to hold on and eventually ended the day back around that level. A dovish Fed today could seal the deal and deliver a Santa rally for the yellow metal in the final weeks of the year.

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

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.
Craig Erlam