Oil pops on Keystone Pipeline leak, gold edges higher

[PocketOption]

Oil pops on Keystone Pipeline leak, gold edges higher

Oil

Crude prices spiked higher after the Keystone Pipeline was shut after a leak in Nebraska. ​ Earlier, Tribeca Shipping Agency reported 19 oil tankers are still awaiting passage through Turkey's Bosphorus Strait. ​ Today's headlines appear to be only short-term negative for supplies but don't change anything with the deteriorating crude demand outlook. ​

The initial spike following the Keystone Pipeline leak news was short-lived but with prices so close to the $70 level, we might not see much more weakness. ​ The $70 level remains key for oil as that is where the Biden administration is expected to start to consider refilling the strategic petroleum reserve. ​

Gold

Gold prices are flirting at the $1800 level as the dollar softens ahead of a key round of inflation data. ​ It starts on Friday with an expected deceleration with wholesale price gains and later that morning the University of Michigan inflation expectations that are expected to remain steady. ​ On Tuesday, we will get the November Inflation report that should indicate that price pressures continue to ease and on Wednesday we get the Fed. ​ The FOMC is expected to downshift to a half-point pace but traders will care to see what members have to say about the trend of inflation and where rates could peak.

Gold looks like it will find a home around the $1800 level until we have better indications of the path of prices. Key resistance remains the $1830 level with decent support at the $1750 region.

Source: Oil pops on Keystone Pipeline leak, gold edges higher