Oil higher despite weak Chinese PMI
Oil prices are continuing to edge higher at the start of the week, albeit at a much slower pace with Brent now not far from $100 a barrel. OPEC+ may be comfortable with that after slashing output targets by two million barrels per day but I’m not sure anyone else will be.
The Chinese PMI data overnight highlighted the challenges facing the world’s largest crude importer as it tries to balance its zero-Covid policy with economic growth. That may have helped take some steam out of the rally today but it didn’t last.
Gold tumbles below $1,700
Gold prices have slipped by more than 1%, far outweighing the modest rally in the dollar at the start of the week. The yellow metal is on course for the fourth day of losses amid a resurgent greenback and dwindling faith in slower monetary tightening. Yields are up around the world today and that’s going to be further pressuring gold. A move back below $1,700 on Friday is another worrying move which could wipe out any enthusiasm generated during the late-September, early-October rally.
Back below $20,000
Bitcoin is also struggling at the start of the week after breaking back below $20,000 on Friday and failing to recapture those losses over the weekend. Ultimately, little has changed though. The cryptocurrency has been fluctuating around $20,000 for months and that remains the case now.
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