Oil prices are a little higher again on Wednesday trading around the peak we saw earlier this month. The optimism that’s driving equity markets higher is filtering through to commodity markets as well, with the prospect of stronger growth in the world’s two largest economies boosting demand expectations.
A move back towards $90 in Brent would take us to levels not seen since early November and suggest traders are feeling much better about the global economic outlook. Of course, that’s probably going to be subject to frequent change unless we get a steady stream of good data, while earnings season could put a dampener on sentiment.
Another run at resistance
Gold is pushing higher once more after stalling just above $1,920. The zone between $1,880 and $1,920 has been a major zone of support and resistance in recent years and it appears to have slowed its ascent on this occasion too. That said, momentum has remained strong with the rally so the pause may only be brief. Should it fail to hold that momentum during this latest move higher, it could trigger further profit-taking and potentially a correction.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/
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