Commodities and Bitcoin rallies stall

  • Oil inventories drop as Saudis raise prices
  • Gold rally stalls ahead of $2050
  • Bitcoin anchored at $28,000

Oil

Crude prices are wavering after weakening US economic data was countered by a larger than expected draw with stockpiles as demand across all products roared back.  Energy traders digested a round of US data that suggests the world’s largest economy is headed towards a recession, but then had a rather bullish EIA crude oil inventory report that was immediately followed by a decision from the Saudis to increase oil prices to their Asian customers. 

Over the short-term, it seems will be stuck with higher oil prices as the Saudis have this market wrapped around its finger.  Gasoline demand in the US is impressing and if Americans have big summer vacation plans that could help drive $100 oil calls. 

Gold

Gold’s rally is taking a brief timeout before it makes another attempt at a record high. Demand for safe-havens has never been better since recession risks have not been this high in decades, banking concerns remain, and excessive pessimism for equities. The gold trade is getting a bit overcrowded but the macro backdrop still strongly remains firmly in its favor.  Gold’s immediate resistance comes from the $2050 level, but the all-time high of $2075.57, which was made in August 2020 could prove to be much harder to break beyond.

Gold

Bitcoin

Bitcoin is still holding onto the $28,000 level as crypto traders await any fresh developments in the cryptoverse.  The news cycle has been rather slow when you see some of the biggest moves after Elon Musk changes Twitter’s logo to the Dogecoin symbol or as Ether rallies ahead of its key Shanghai upgrade date.

As earnings season approaches, we will hear from the banks in less than two weeks and could hear more concerns about turmoil.  The banking crisis is far from over and that still could prove to be positive for crypto. 

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.