Oil rises on SPR, gold gains ground

Oil settling into a range

Oil prices are higher on Thursday which comes after President Joe Biden confirmed the release of the final 15 million barrels from the SPR, as part of the 180 million previously agreed, and warned more could follow. That was already priced into the markets though and the price has fallen quite heavily over the last week and a half. Brent seems to now be settling into a new range, perhaps between $90 and $100, a level most may be relatively comfortable with.

A good day for gold

Gold is making decent gains after earlier testing the September lows around $1,620. The yellow metal is being lifted by a weaker dollar and lower yields but the question remains how sustainable is it? I’m sure there are many doubters considering the lingering concerns about inflation and interest rates and that may make any gains hard-fought. If it breaks below $1,620, we could quickly see $1,600 come under pressure.

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