Oil remains volatile, gold could be eyeing $2000

Volatile amid worrying economic outlook

It's been another volatile session in oil markets, bouncing back from their lows while remaining negative on the day. A failure to get back into the green would represent a fourth consecutive day of losses, albeit to a much lesser extent than the last three.

Traders are clearly concerned about the economic outlook this year in light of recent bank failures and uncertainty at Credit Suisse. Authorities may have thrown their support behind the banking sector while managing the collapse of the mid-tier institutions in the US but traders are far from convinced that the worst is behind us. Especially if central banks persevere with hikes, as the ECB did today. Volatility is going nowhere soon.

Eyeing $2,000?

Gold has been choppy today but continues to trade near yesterday's peak amid a dash for safety and lower bond yields. The question on traders' lips now is whether fear is baked in, meaning yields could pare declines as (if) the dust settles, which could be a near-term headwind for gold, or if the turbulence is just getting started. Time will tell but further fallout could see gold move closer to February highs, around $1,960, with $2,000 then key above that.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/