Oil hovers above USD 100, gold struggles




Crude prices remain volatile as energy traders grapple with a deteriorating demand outlook that is still vulnerable to shortages. Supply risks and tight market conditions should give oil some support above the $80 level, but a quicker tumble to a global recession will keep prices heavy. ​

Oil pared gains after eurozone consumer sentiment plunged to a record low as the energy crisis and aggressive central bank tightening is killing economic growth prospects. ​ ​ ​


Gold prices are steadying as FX volatility sends the dollar everywhere. ​ Aggressive moves higher with global bond yields are not having that much of a negative impact on gold. Gold is clearly going to become a safe-haven as the global outlook deteriorates and as Wall Street grows confident that we are nearing the peak with Treasury yields. ​

Gold has massive support at the $1660 level and if it can stabilize above there, prices could eventually make a move back above the $1700 level.


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

By Ed Moya