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Oil edges lower, gold rallies

Started by PocketOption, Feb 15, 2022, 06:29 am

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PocketOption

Oil edges lower, gold rallies

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Oil pares gains but remains well supported


Oil prices are a little lower today after spiking on Friday following reports of a potential n invasion. Crude prices are inching ever closer to USD 100, something that looked very possible prior to e risk-premiums being priced in. That has obviously accelerated the move and we may not have to wait long if the claims turn out to be accurate.


The fact remains that the oil market is extremely tight at the moment, as the IEA alluded to late last week. Demand growth is strong and OPEC+ continues to fail to hit output targets. Rather than getting closer, the gap is even widening. We don’t need OPEC+ to expand targets; it’s time for unilateral action from Saudi Arabia which reportedly has the capacity to alleviate the pressures. Until then, hope lies with a nuclear deal between the US and Iran. In the absence of either, triple-figure oil looks very possible.


Three months high for gold


Gold is rallying again at the start of the week as traders are once again drawn to the safe haven and inflation hedge in times of need. The yellow metal surged late on Friday and remains well supported, despite seeing some profit-taking earlier on today.


The latest developments in e have seen gold smash through USD 1,850 resistance and it’s now closing in on the mid-November highs around USD 1,875. If the situation does deteriorate as feared, we could see gold remain a favourite, with USD 1,900 the next test. Especially if oil and gas prices continue to rally on the fear that conflict will further squeeze supplies in an already tight market, fueling more inflation.


For a look at all of today's economic events, check out our economic calendar: www.marketpulse.com/economic-events/


Source: Oil edges lower, gold rallies