Oil slightly higher, gold continues to drift lower

Oil settled into lower range but focus remains on banks and OPEC+

Oil prices were drifting lower earlier in the day but have recovered to trade modestly higher as we near the end of the trading week. It would appear traders are waiting for one of two events to dictate the path of travel going forward; another bank failure or an OPEC+ production cut. You could throw US debt ceiling drama and default into the mix but I’m only inclined to focus on remotely plausible events at this stage.

In the interim, oil appears to have stabilized in the lower trading range it briefly entered into in March, between $70-$78 in Brent or roughly $64-74 in WTI. A lower growth environment is seemingly expected now in light of recent bank failures and a less inspiring Chinese Covid recovery.

Has gold entered into a correction?

The gold rally and run at record territory is gradually deflating despite inflation data this week being respectable and pointing in the right direction. Despite it even coming in slightly better than expected, the yellow metal is drifting lower for a third day, perhaps a sign the trend was looking a little tired. Another run at record territory may well be on the cards at some point in the not-too-distant future but for now, the focus has turned to key support zones, the first of which is $1,950-$1,970, where price has faced pushback repeatedly in recent months.

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.

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.