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Oil

Oil prices remain a volatile trade as the crude demand outlook grows more uncertain as inflation remains uncomfortably high and has accelerated global growth concerns. ​ The risk-off tone on Wall Street is leading to a much stronger US dollar which is weighing on oil prices. Many energy traders remain fixated over the EU's potential ban on n crude, which now seems to be losing momentum. ​ The EU is struggling to get Hungary's support, which could suggest this embargo won't happen anytime soon.

Earlier oil was supported after the EIA noted that there is currently almost a universal product shortage and that they are prepared to release more oil stocks if needed. ​ In this market environment, oil will struggle if China moves forward with city-wide lockdowns. Despite all the fears of weakening growth prospects, oil markets should be supported by a strong summer vacationing seasoning that will see lots of driving, flying, and cruise ship trips. ​

Gold

The dollar has firmly put gold in the danger zone and a break of the USD 1800 level could lead to further technical selling. Gold can't attract any attention until this move in the dollar ends. ​ Right now, Treasury yields and the stock market are both declining, which should suggest we are getting close to capitulation with this de-risking moment on Wall Street. If gold breaks below the USD 1800 level, technical selling could support a drop towards USD 1750. ​