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Oil tumbles, gold slides

Started by PocketOption, Oct 19, 2022, 01:05 pm

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PocketOption

Oil tumbles, gold slides

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Oil falls on SPR, China fears


Crude prices are sliding on expectations the Biden administration will continue to tap strategic oil reserves and on fears China's situation is much worse. ​ The Biden administration has one mission right now and that is to ease the inflation pain the American consumer is feeling before the midterm elections. ​ The price at the pump is an important weekly reminder for the consumer and energy traders should not be surprised if Biden continues to be aggressive in tapping the SPR. ​


China's decision to delay the release of key economic readings could suggest the data is so ugly that they don't want it released during the party's congress. ​ This round of data was going to reflect the last round of COVID lockdowns, which probably would dampen the government’s ambitious agenda for the next five years. ​ ​ ​


Crude prices are struggling here and that will continue if the mood on Wall Street sours. ​


Gold


It is going to take a lot to get investors interested in buying bullion. ​ Gold prices continue to remain heavy despite a respite in the bond market selloff. ​ Earnings season has driven some investors back into equities, which means demand for safe-havens was low. ​ The current market environment is still bearish for gold as Wall Street becomes convinced that the Fed will need to continue rates into the spring.


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