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Oil
Crude prices are still rebounding from yesterday’s Saudi denial that OPEC+ was considering an output increase. Oil is having a tug-of-war with China’s Covid demand concerns getting countered with what appears to be a motivated Saudi Arabia to keep the oil market tight.
White House official Hochstein said that the US can still manage any energy emergency with the SPR. He also noted that it will be opportunistic about refilling the SPR and that they could look to immediately repurchase oil when prices are in the $70 per barrel range.
The recent oil price slide was overdone and given global economic activity excluding China won’t completely fall off a cliff, prices should continue to stabilize here.
Gold
Gold got a little boost from the weaker dollar but that appears to be fading quickly. Gold should have a hard time rallying here as the dollar seems poised to find some support here. The Fed is likely to stick to the hawkish script for a while and unless we see a major improvement in China’s COVID situation, gold should struggle to muster up a meaningful rally.
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Image and article originally from www.marketpulse.com. Read the original article here.