Crude higher, gold consolidates

Oil

Crude prices are rising after the stockpiles posted a modest gain and a decent improvement with demand. ​ The EIA crude oil inventory report showed that demand for crude oil and gasoline improved, while distillates softened. ​ Crude exports surged 21.6% as shipments abroad reached the highest levels since November. ​ Gasoline prices have not yet been impacted as stockpiles remain elevated, touching the highest levels since March.

Lately, it seems this oil market has a tendency to lean towards a bullish spin after any major oil event. ​ WTI crude should find resistance ahead of the $83.50 level, but if that does not hold, we could see a mini breakout.

If risk appetite continues to take a big hit from the tech-driven selloff, that should also weigh on crude prices.

Gold

Gold prices are locked into consolidation mode as traders await to see how the Fed reacts to growing fears of a macro slowdown. ​ Risk aversion is running wild but gold is not breaking because a slowdown will confirm disinflation trends will remain and a recession certainty could lead to rate cuts at the end of the year. ​ Gold might trade between the $1935 and $1960 range until we get to the Fed event.

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