Oil ticks higher, gold choppy

Continuing to creep higher

Oil prices are continuing to creep closer to $100 amid ongoing speculation over China’s Covid-zero commitment and a little more positive sentiment in broader markets. Brent and WTI are treading water but it’s been choppy at times, with the former coming within a dollar of triple figures.

That won’t make good headlines at a time when the Democrats in the US need all the good headlines they can get as people head to the polls. But with OPEC+ cutting output aggressively in anticipation of a demand shock, there’s little they can do. As we’ve seen following President Biden’s wasted trip to Saudi Arabia months ago.

Gold choppy after jobs report

Gold is choppy at the start of the week but largely holding onto Friday’s gains. I struggle to see how the jobs report was good for gold – especially to the tune of 3% – but that is the markets right now and perhaps there was some delay from what was an overreaction to the Fed a couple of days earlier.

Still, the yellow metal is trading around $1,680 where it has now stalled. This has been a notable area of support and resistance in recent months and so it is proving again. If it can overcome this, $1,700 will be the next test, followed by $1,720 above that.

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