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Oil tumbles, gold slides

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Oil falls on SPR, China fears

Crude prices are sliding on expectations the Biden administration will continue to tap strategic oil reserves and on fears China’s situation is much worse. ​ The Biden administration has one mission right now and that is to ease the inflation pain the American consumer is feeling before the midterm elections. ​ The price at the pump is an important weekly reminder for the consumer and energy traders should not be surprised if Biden continues to be aggressive in tapping the SPR. ​

China’s decision to delay the release of key economic readings could suggest the data is so ugly that they don’t want it released during the party’s congress. ​ This round of data was going to reflect the last round of COVID lockdowns, which probably would dampen the government’s ambitious agenda for the next five years. ​ ​ ​

Crude prices are struggling here and that will continue if the mood on Wall Street sours. ​

Gold

It is going to take a lot to get investors interested in buying bullion. ​ Gold prices continue to remain heavy despite a respite in the bond market selloff. ​ Earnings season has driven some investors back into equities, which means demand for safe-havens was low. ​ The current market environment is still bearish for gold as Wall Street becomes convinced that the Fed will need to continue rates into the spring.

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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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