Oil markets volatile ahead of OPEC+ meeting next weekend
Oil prices are recovering slightly after a volatile week amid conflicting commentary from key members of the OPEC+ alliance. From a “watch out” warning from the Saudi Energy Minister to a suggestion that the group will not cut output next weekend, traders have been left a little confused as to what we can expect.
It may be that Saudi Arabia wants to keep traders on their toes but to make these comments and not follow through could be perceived as weak and see prices drift lower again. Unilateral action may not pack the same punch as a group cut, although you wouldn’t put it past them.
Gold hit by stronger US inflation numbers
Gold is paring losses at the end of the week but still looks vulnerable to further declines amid more unfavourable data. The US inflation, income, and spending data were another blow, indicating more resilience in the economy and stubbornness of price pressures. It’s a common theme this week and a concerning one for policymakers that hoped they could ease off the brake after a gruelling tightening campaign.
The yellow metal broke below $1,960 on Thursday, a loss of key technical support, before trying and failing to break back above today in what could be viewed as confirmation of the initial move and a bearish signal. If it does continue to drift lower, $1,940 could be an interesting level of support, with $1,900 then being a notable psychological level.
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