Oil rebounds, gold softens

[PocketOption]

Oil rebounds, gold softens

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. ​

Source: Oil rebounds, gold softens