Oil steady, gold eyes FOMC

Oil steady as we await omicron and central bank news

Oil prices are also stable ahead of the meetings this week. They’ve bounced back strongly on the back of the OPEC+ decision and reports of omicron symptoms being less severe, but a huge amount of uncertainty remains which has forced it into consolidation.

If risk appetite is given a boost by central banks this week we could see it push on higher but ultimately, the omicron data is going to be key. Politicians are clearly concerned and the rate of transmission is worrying. Further restrictions could weigh but traders will be all too aware that any drop in the price on this could trigger a sudden adjustment from OPEC+.

Gold consolidates ahead of the Fed

Gold prices remain in consolidation ahead of the Fed meeting tomorrow. It hasn’t really progressed for a few weeks now although it has settled towards the upper end of its recent range which may be encouraging for gold bulls hoping for a slew of dovish central bank announcements this week.

The Fed is still expected to accelerate its tapering this week but how gold reacts may well depend on how dovish the language around it is. It will be tough as the dot plot will likely show policymakers have turned much more hawkish in recent months which could weigh on the yellow metal.

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