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Oil rush, gold steady

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Oil

The oil price snapback will only continue if the headlines continue to support the narrative that several countries are starting to have a much better handle with the delta variant.  The oil market is still very tight and with Chinese demand picking up, crude prices only have one way to go after an overdone selloff.

Crude prices should benefit from declining inventories and as the world’s two largest economies start to see a return of normal crude demand.

Gold eyes Powell speech at Jackson Hole

Gold prices continue to go nowhere as investors eagerly Fed Chair Powell’s next chess move over how to delicately signal readiness over tapering asset purchases.  Gold prices gave up early gains at the NY open as stocks pushed to fresh record highs and after battered Chinese stocks rebounded.

Stocks pared gains and gold prices steadied after President Biden stuck with the August 21st date for withdrawal from Afghanistan.  Earlier, a Taliban spokesman said the US must complete Afghanistan evacuations by August 31st.

Heading into Jackson Hole, gold prices seem fairly supported because not many traders think Fed Chair Powell has seen enough progress in the labor market and easing of delta variant concerns to formally signal tapering in September.

Gold will still be able to thrive over the next few months if the Treasury yield curve slowly steepens.  Gold may form a broadening formation between the USD 1780 and USD 1820 levels leading up to Fed Chair Powell’s speech on Friday.

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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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