Oil
Crude prices rose after constant reminders that the oil market is still tight. Saudi energy minister Abdulaziz noted that they need to retain spare oil capacity. On Halliburton’s earnings conference call they stated that oil and gas supply is tight for the foreseeable future. Earlier Valero said that US fuel demand has surpassed 2019 levels.
Risk appetite was somewhat healthy and that helped keep oil prices positive this morning. The dollar rally hit a wall and that should provide a boost for all commodities.
Gold higher as Treasury yields fall
Gold prices got a boost as Treasuries kept the rally going on strong. US economic data is deteriorating and that is helping push down Treasury yields. If the data keeps on getting uglier, the December FOMC meeting debate might not be between a half-point increase and 75 basis-point hike, but with a quarter-point rise and 50 basis-point boost.
Gold’s rebound is gaining momentum as the 10-year Treasury yield continues to drop further away from last Friday’s high. Gold’s bearish trend has firmly been in place after prices could not hold the $2000 level in the spring. We’ve seen some bullion rallies stall around the 50-day SMA, which means this current rebound could target the $1700 level.
This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. 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. Most recently 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 and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal.
Ed holds a BA in Economics from Rutgers University.
