Oil gets a GDP boost, gold drops ahead of Fed


Crude prices got an unexpected boost from a US economy that doesn’t want to break. Another round of US data supported the argument that this economy still could get a soft landing, which is very positive for the short-term crude demand outlook. The problem with the long-term growth outlook for the US economy is that it needs a recession in order for inflation to get tamed. ​ Strong data is not necessarily good news for winning the war against inflation and that will weigh on long-term US growth prospects. ​

Improving news with China’s COVID situation and a resilient US economy should keep oil prices supported above the $80 region.


Gold is softening a bit as better-than-expected US GDP data supports the argument that the Fed could still deliver a soft landing. ​ Gold’s rally was on hold until the FOMC decision, so this morning’s weakness to strong GDP and jobless claims data was an easy trade. Safe-haven demand is still needed as the consumer is clearly weakening here and we will probably need to wait a little longer for GDP and claims data to catch up.

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.