Oil rallies, gold dips lower

WTI jumps above USD 60

Oil prices are rallying once more, with WTI breaking above USD60 today for the first time in more than a year. Optimism around the outlook and suppliers keeping production tight is primarily behind the move, with colder weather apparently giving it another bump more recently.

The rally wasn’t exactly lacking any momentum anyway so it’s perhaps not that surprising that WTI has captured USD60 but you have to wonder what it still has left in the tank. Again, momentum indicators aren’t raising any major red flags yet but that may soon change.

Gold edges lower

Gold is making marginal losses on the opening day of the week. The yellow metal continues to look vulnerable to the downside, although it is holding up quite well so far despite a number of breakout attempts.

The dollar index broke out of an inverse head and shoulders a couple of months ago and could put downside pressure on gold, although it is also dragging its feet. It continues to hold above 90 which is encouraging, but a break back below here could spell trouble and be a lifeline for the yellow metal.

How long until bitcoin breaks USD 50,000?

Bitcoin hit fresh highs over the weekend and came within a whisker of USD50,000. It’s been a fantastic couple of weeks for the cryptocurrency space, with numerous big names making bitcoin related announcements. Not to mention Elon Musk’s continuous flirtations with Dogecoin on Twitter. A break of USD50,000 almost feels inevitable at this point, it’s more a question of how much further it can go and how fast. I don’t think we’ll be waiting as long as we did for uSD20,000 to fall but there may be a little more resistance yet.

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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.