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Oil

Crude prices are rising on hopes China's demand situation will quickly improve and on concerns that supplies will be kept tight by both  and OPEC. China's reopening is coming; it won't happen overnight, but it will provide a major boost to demand in the outlook next quarter. ​

Oil has too much support at the $70 level, which should suggest the recent change in China's approach to fighting COVID could support a rally towards the $80 level. ​

Gold

Gold prices are settling below the $1800 level as traders await both a key inflation report and the FOMC decision. ​ Gold has had a strong performance recently as traders widely believe that inflation has peaked, while some are hoping that a soft landing is still possible. ​ The market is pricing in rate cuts next year and that is also providing some ammunition for gold bulls.

Gold should have a strong performance over the first half of next year as the Fed would not likely resume tightening if inflation remains high as growth turns negative. ​