Oil choppy as it establishes a new range
Another choppy session in oil markets but one in which the price is once again broadly unchanged on the day. Yesterday we saw a decent rally before gains were erased and today we’ve seen the opposite. It continues to look like oil is establishing a new range after a host of factors caused massive swings in the price including the increasingly pessimistic global economic outlook and the huge two million cut to output from OPEC+. We could see Brent stabilise between $90 and $100 now barring another coordinated SPR release.
Recovery rally short-lived
Gold prices are slipping a little again after a recovery rally on Thursday was cut short. The bullish case for the yellow metal remains weak considering the uncertain outlook for inflation and interest rates. It’s testing support around $1,620 this morning with further support potentially coming around $1,600.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/
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.
