Oil punches above USD 100, gold slips

Recession the primary downside risk

There’s naturally a lot of focus on the energy market right now, with Gazprom reducing gas flows to Europe via Nord Stream 1 to only 20% from tomorrow. The news didn’t come as a massive shock even if it did trigger a 10% spike in the price. It’s not the first or last move that will ensure European supplies remain extremely tight throughout winter.

Oil prices have pushed higher and above USD 100 once more with events yesterday just another reminder of the plight of extremely tight markets and tensions with one of the world’s largest suppliers. It’s not going to get any more comfortable, with the primary downside factor for prices being a recession. It could be an interesting week on that front.

Gold slips ahead of the Fed

Gold has eased off its highs of recent days, with risk-averse markets favouring the dollar at this point in time. While its performance since Thursday has been encouraging, it never looked particularly sustainable and we may now be seeing evidence of that. It promises to be a massive couple of days for the yellow metal.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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.