Can oil break $100 again?
It’s been quite the volatile week for oil, with Chinese rumours not going away, restrictions and mass testing being undertaken once more and the global economic outlook seemingly changing on a daily basis. There’s no such thing as a boring week these days.
Today it’s the improvement in economic sentiment on the back of that inflation data alongside a modest relaxation of Chinese quarantine measures that are lifting prices. A press briefing is expected tomorrow which may shed further light but if this is as good as it gets, investors have got way too carried away.
Brent remains in the middle of its $90-$100 range for now but more bullish developments like this, or a further relaxation of Chinese restrictions on Saturday may test the upper end of that.
Gold shines once more
Gold bulls have been waiting for this week for a long time. A week (or so) in which the Fed signalled a potential slowing of rate hikes and the CPI data displayed a significant and broad-based decline. The yellow metal is shining once more and is back at levels not seen in almost three months. It’s seeing some resistance around $1,760 now and may see more around $1,780 but at this point, gold bulls may have their sights set on $1,800.
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.
