OPEC+ threats lending support
It’s been another volatile week for oil prices, with global growth fears dampening the demand outlook but OPEC+ sitting in the background ready to respond if prices drop too far. Brent crude remains above $90 at the moment which may stop the alliance from calling one of the emergency meetings it warned of but if growth fears continue to rise, that may change.
A knockout blow
Gold broke below $1,680 on Thursday and has been heavily under pressure since, falling close to $1,650 before finding some support. The yellow metal was already facing strong resistance above, failing to break through $1,730 even when the market was front-running a softer inflation reading and the CPI data appears to have delivered the knockout blow. With more tightening now priced in, the near-term outlook is challenging.
Bitcoin under pressure
As some suggested, the Ethereum Merge appears to have become a “sell the fact” event and bitcoin is potentially getting dragged lower as well. Of course, broader risk appetite has also taken a big hit recently, so that is probably strongly contributing to the move as we head into the weekend. With the price back below $20,000 once more, the focus may shift back to the June lows after a brief recovery last week.
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.
