• Fri. Nov 15th, 2024

Oil higher on demand optimism, gold hovers near highs

ByEd Moya

Jan 10, 2023

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Oil

Crude prices are higher as economic optimism grows for not just China, but also the eurozone. The oil market is digesting a global slowdown that might not be as bad as feared. ​ Energy traders still believe that OPEC+ will do whatever is needed to keep prices supported and that includes more production cuts this quarter. ​

Oil seems like it wants to waver right now until we get a better handle on China’s Covid surge. ​ As China battles an unprecedented surge in Covid cases, everyone wants to see if travel continues to rebound. ​

Oil got a minor boost as the pared gains after Fed Chair Powell did not deliver his best hawkish hits at a Riskbank event. ​ ​

Gold

Gold prices are holding near recent highs as traders grow optimistic the Fed won’t be able to follow through with its hawkish threats. Fed Chair Powell’s appearance at a Riksbank event was really a non-event as he didn’t focus on monetary policy. The next big move in gold seems like it will have to wait until this week’s inflation report. ​

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Image and article originally from www.marketpulse.com. Read the original article here.