Oil and gold gain ground

Oil up on inventory drop

Oil prices are up around 1% today, pushing them back towards the upper end of their recent ranges, with USD54 being interesting resistance for WTI. A break above here could see it gather renewed momentum, something that it’s continuing to lack during these surges. This points to further consolidation for now, with support around USD 51.50-52 being of interest. A large decline in inventories on Wednesday may have driven the surge in prices, with a softer dollar today providing further support.

Gold edges higher after failed USD breakout

A pullback in the dollar today is providing some upside for gold, which has been consolidating around USD1,850 in recent weeks. Nothing much has really changed on that front and the Fed on Wednesday did little to change that. It reinforced its commitment to low interest rates and bond purchases and offered a slightly more downbeat assessment of the economy in the near-term, which allowed 10-year Treasury yields to ease back towards 1%. The dollar index failed to break above 91, which could have been bad news for gold. A breakout here should determine the yellow metal’s near-term prospects, with support seen around 90.

Bitcoin survives another test

Bitcoin has survived the latest assault on USD30,000 but I feel the battle may not yet be over. The resistance at this level has been impressive but further runs at it will surely see that weaken. It’s trading around USD32,000 at the time of writing but another run lower still looks likely. A break above USD35,000 will make things more interesting to the upside. Until then, USD30,000 will continue to look vulnerable.

For a look at all of today’s economic events, check out our economic calendar. www.marketpulse.com/economic-events/

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.