Risks tilted to the upside?
Oil markets are bouncing back in another volatile session at the end of the year. Going into 2023, the risks are arguably tilted to the upside, although that has been the narrative for much of the year and yet we’re on course to end it not far from where we started.
While producers have finally caught up with post-pandemic demand, other risks remain next year, notably Russian output amid the new price cap and its threats to cut output and not supply any countries abiding by it. That isn’t a problem now but if prices do start rising, that could accelerate the move quickly.
Gold lacking momentum
Gold is pushing higher again on Friday but once more it lacks the momentum to build on recent gains in any considerable way. The outlook may still look very positive for the yellow metal with central banks surely nearing peak interest rates and the economic outlook rather bleak but in the near term, a correction may be on the cards in the absence of another bullish catalyst.
Another intriguing year
The crypto community won’t be sad to see the back of 2022 and who can blame them? Who knows what’s to come in 2023 but at the very least, they’ll be hoping to put the FTX scandal behind them and focus once more on innovation and adoption. That may be a lot to ask in the short term, especially if other market factors aren’t favourable. No doubt it will be another intriguing year for the space.
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.
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.
