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Oil rallies, gold rally capped

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Oil 

Crude prices are rising after demand destruction fears have become overdone. Nationwide gas prices are now below $4 a gallon and that should definitely provide some relief for what has been a lackluster summer driving season. ​ The economy is in too good shape for further crude demand destruction to occur and that should keep oil prices supported well above the $90 level.

The IEA is noting that global oil demand growth will continue as oil consumption will benefit from new demand as elevated natural gas supplies. The oil market still looks like it will be very tight over the next year even if it does dip into a surplus this quarter.

Gold 

Gold prices are declining as the bond market selloff returns as investors may have become too optimistic about a Fed pivot. ​ Gold needs to see more data in the next couple of months to confirm that inflationary pressures are moderating.

Gold looks a little vulnerable here and momentum selling could drag prices towards the $1780 level. ​

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Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023.

His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies.

Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news.

Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal.

Ed holds a BA in Economics from Rutgers University.
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