Oil drops below USD 100, gold rallies


Oil volatility likely to continue

Another volatile start to the week in oil markets, where Brent and WTI now find themselves around 3% higher on the day. This comes after WTI fell close to $70 a barrel, the level at which the White House previously indicated it will begin refilling the SPR which could provide some initial support for the price.

The outage on the Keystone pipeline between Canada and the US could be offering further support for the price, as could renewed Russian threats to cut supply in response to the G7 price cap and refusal to sell to any participating countries. I expect prices will remain volatile against the backdrop of these and many other factors.

Choppy ahead of the Fed

Gold remains volatile ahead of the inflation data and Fed decision this week. It’s continuing to see resistance around $1,810 on rallies but there’s clearly still plenty of bullish appetite as is evidenced by the series of higher lows over the last few weeks. It’s seeing support today around $1,780, where the yellow metal saw resistance last month during the initial surge. These levels may remain key in the run-up to tomorrow’s inflation release.

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.

Craig Erlam

Craig Erlam


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