Recession the primary downside risk
There's naturally a lot of focus on the energy market right now, with Gazprom reducing gas flows to Europe via Nord Stream 1 to only 20% from tomorrow. The news didn't come as a massive shock even if it did trigger a 10% spike in the price. It's not the first or last move that will ensure European supplies remain extremely tight throughout winter.
Oil prices have pushed higher and above USD 100 once more with events yesterday just another reminder of the plight of extremely tight markets and tensions with one of the world's largest suppliers. It's not going to get any more comfortable, with the primary downside factor for prices being a recession. It could be an interesting week on that front.
Gold slips ahead of the Fed
Gold has eased off its highs of recent days, with risk-averse markets favouring the dollar at this point in time. While its performance since Thursday has been encouraging, it never looked particularly sustainable and we may now be seeing evidence of that. It promises to be a massive couple of days for the yellow metal.
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