Oil
Crude prices initially surged as China’s fight against COVID appears to be headed in the right direction, but gave up a good amount of gains after US officials signaled that the strategy on Russian crude could switch from embargo to tariffs. If the West decides to slap tariffs on Russian crude instead of an embargo, that would keep supplies on the market, which should put a cap on the recent crude rally.
The oil market remains tight but if the EU embraces the strategy of putting tariffs on Russian crude instead of phasing them out, the rally in oil prices might show some exhaustion here.
Gold gains as dollar dips
Interest rate differential expectations have narrowed and that has sent the dollar lower, which has given the greenlight for gold investors to buy the dip. Gold is following the broader market rally and is now comfortably above the USD 1800 level, which could trigger further technical buying. It seems the dollar is finally ready for a pullback and that could last a couple days if risk appetite continues to show signs of getting its groove back.
Gold pared gains as Treasury yields surged higher after earnings and a retail sales report suggested the consumer is still strong and that is leading to expectations that the Fed won’t have to ease up with tightening policy.
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.
Ed Moya
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.
Latest posts by Ed Moya (see all)
- Market Insights Podcast – Powell struggles to deliver a hawkish hold - 1 November 2023
- Fed React: USD/JPY softer after Fed fails to deliver hawkish hold - 1 November 2023
- EUR/USD: Dollar wavers on slower pace of Treasury Refunding Sales and mixed labor data - 1 November 2023