Oil prices steady, gold eyes US inflation

Oil steady after rebound

Oil prices are relatively steady so far today after rebounding strongly in recent days. An improvement in risk appetite in the markets combined with a softer dollar may have contributed to the crude recovery. Especially when combined with another stall in negotiations between the US and Iran over the nuclear deal and recent warnings from OPEC+ about output. The price of Brent was trading near six-month lows prior to the rebound and that may have got traders a little nervous.

Gold steady ahead of the inflation report

Gold is relatively flat on the day after recovering well in recent days. A weaker dollar and stable US yields have aided the moves in the yellow metal but we are seeing that stall ahead of the inflation data. The near-term outlook will be heavily influenced by the August report, especially if we see another sharper deceleration in price growth. If inflation doesn’t retreat as much as expected, that disappointment could hit gold hard and potentially draw focus back towards $1,680 where it previously saw strong support.

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.