Oil prices drop, gold remains choppy

Calls for $100 oil premature

Oil prices are slipping again on Tuesday after paring losses over the last couple of sessions. It would appear crude prices have now settled back into their pre-OPEC+ intervention trading ranges, with Brent between $78-$88 and WTI ​$73-$83.

The move lower today could even be another push to close the OPEC+ gap from a few weeks ago after falling just short late last week. Calls for $100 in the aftermath of the OPEC+ decision may have been premature, although, amid such an uncertain outlook, it is still possible if a soft landing is achieved. The second half of the year is poised to be more challenging for the global economy though as conditions tighten further and prior tightening takes hold.

Consolidation in gold ahead of US economic data

Gold is relatively unchanged today, continuing the consolidation we’ve been seeing over the last week or so. Higher rate expectations have pushed it back from near-record highs but traders appear unconvinced by those expectations and reluctant to give up on all-time highs.

The yellow metal has remained choppy around $2,000, a big psychological level, albeit one that on this occasion hasn’t been the catalyst for a significant shift in either direction. Instead, traders appear willing to wait for further US data – of which there’s plenty to come this week – before making their mind up. In the interim, consolidation may continue.

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

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Craig Erlam

Craig Erlam

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.
Craig Erlam