Oil steadies, gold eyes Fed

Oil stabilizes as we await more Omicron data

Oil prices appear to have stabilized over the last week after roaring back from their Omicron-induced losses. OPEC+ put a floor under the price for now as the group warned of sudden adjustments in output but ultimately, the price will only hold up as long as investors continue to believe Omicron poses no substantial threat. Leaders appear more concerned than investors at the moment which is always a worry, but with oil prices 15% off their October highs, there does appear to be some caution priced in at these levels.

Gold range-bound ahead of the Fed

Gold is seeing some support for a second day but remains below USD1,800 and within the range it’s traded broadly within over the last few weeks. If it can break above USD 1,810 it may pick up some momentum to the upside but I struggle to see that ahead of the Fed decision on Wednesday. Then it’s a question of what gold bulls will want to see from the meeting. No taper acceleration? Pushback against rate hikes? Transitory being brought out of retirement? I’m not sure we’ll see any of these.

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.