Oil slumps, gold lower on strong dollar


Crude prices edged lower as a section of the Keystone pipeline restarted and as global recession risks increased after a wave of central banks delivered another strong round of tightening. Oil’s recent rally is running out of steam as risk aversion runs wild. ​ The dollar might be poised to rally here and that should keep some pressure on oil prices.


Gold is weakening as markets worry that global central bank tightening will drive recessionary fears and keep the dollar supported here. ​ Traders are still digesting all the Fed and ECB actions and that should ultimately still have a little room for rates to rise but the peak is getting close to getting priced in.

Gold’s decline below the $1800 level triggered technical selling that stalled out just before the $1780 region. Gold will eventually resume its safe-haven status, but first we need to see more traders convinced that the Fed won’t follow through with their hawkish threats.

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Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.