Oil and gold rise

Oil ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Crude prices rose after constant reminders that the oil market is still tight. ​ Saudi energy minister Abdulaziz noted that they need to retain spare oil capacity. On Halliburton’s earnings conference call they stated that oil and gas supply is tight for the foreseeable future. ​ Earlier Valero said that US fuel demand has surpassed 2019 levels.

Risk appetite was somewhat healthy and that helped keep oil prices positive this morning. ​ The dollar rally hit a wall and that should provide a boost for all commodities.

Gold higher as Treasury yields fall

Gold prices got a boost as Treasuries kept the rally going on strong. US economic data is deteriorating and that is helping push down Treasury yields. ​ If the data keeps on getting uglier, the December FOMC meeting debate might not be between a half-point increase and 75 basis-point hike, but with a quarter-point rise and 50 basis-point boost.

Gold’s rebound is gaining momentum as the 10-year Treasury yield continues to drop further away from last Friday’s high. ​ Gold’s bearish trend has firmly been in place after prices could not hold the $2000 level in the spring. ​ We’ve seen some bullion rallies stall around the 50-day SMA, which means this current rebound could target the $1700 level.

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.