Oil rises on geopolitical angst, gold steady but faces strong resistance at $1800

Oil

Crude prices remain volatile as energy traders digest another round of economic data that supports the idea that the Fed could still deliver a soft landing and as stockpiles remain near 18-year lows. ​ Earlier crude was lower as Beijing struggles with surging Covid cases. ​ Also what’s keeping the oil market on edge is the proposed price cap on Russian crude. ​ Some analysts expect only a modest drop in Russian production but we won’t find that out until next month.

Oil surged after reports that the Druzhba pipeline is halting oil deliveries from Russia. ​ The oil price rally extended after reports that two Russian missiles crossed into Poland and killed two people. ​

Gold

Gold prices are steadying as Wall Street appears set on waiting to see if inflation continues to come down. ​ Gold’s benefited from a couple of soft inflation reports but now it seems it will need to wait a while longer to see if that trend continues.

Gold has major resistance at the $1800 level and that might prove to be difficult to reach unless we see a major move lower with the dollar. ​

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.