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Oil rebounds, gold struggles

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Oil rallies on tight supplies

Oil prices are rallying as last week’s selloff was overdone given how the short-term crude demand outlook remains for the US and China. ​ The oil market remains too tight over the short-term and rising expectations over tougher sanctions with Russian crude should keep demand especially strong here.

Energy traders saw oil prices slide almost 15% in just a week, despite a very tight market. ​ The paid-for crude prices wasn’t justified and more of a reflection of the risk aversion mood that sank global equities.

WTI crude should easily be supported above the USD 100 level throughout the summer, which means any dips will be bought into.

Gold

Gold prices are anchored as investors await to see how aggressive central banks will be with their tightening cycles and if the bond market will sway them into larger-than-expected hikes. ​ Gold is struggling today as Wall Street buys up beaten-down stocks and cryptos. ​ Demand for safe-havens is not the vibe on Wall Street and that could have bullion remaining vulnerable here to the lower boundaries of its new USD 1800 to USD 1880 trading range. ​

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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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