Oil slumps, gold captures $1900

[PocketOption]

Oil slumps, gold captures $1900

Oil pulls back

For one day, energy traders decided to forget about how tight the oil market remains and took some risk off the table as Wall Street hit the sell button with every risky asset over rising geopolitical concerns.  President Biden believes there is still a high risk for a n invasion of the e and that will be the primary catalyst for risk appetite.

Oil prices are on sale today and whatever weakness is happening will likely be short-lived.  Geopolitical tensions should be bullish drivers for crude prices and the risk of USD 100 oil is still very high over the short-term if  invades e.

WTI crude is resting at the USD 90 level and if the pullback continues, massive support lies at the USD 85 level.  Even if energy traders become convinced an Iran nuclear deal will happen, the oil market is too tight for prices to fall below the mid-USD 80s.

Gold pushes higher on e crisis

A month ago, no one wanted to touch gold. Now gold has suddenly become the flavor of the month, now that investors are scrambling for safe havens as geopolitical risks intensify and fears grow that the central banks might go overboard with tightening monetary policy.  A sea of red on Wall Street has sent gold above the USD 1900 level and investors might see further bullish momentum if the e situation intensifies.  Earlier de-escalation in -e tensions in the week have been completely undone and now it seems the risks of an invasion are growing.

Gold has key resistance around the USD 1920 to USD 1930 zone, but if the haven bid remains strong, bullish momentum could support a move towards the USD 1970 level.

Source: Oil slumps, gold captures $1900