Oil rebounds, gold tries to find support

[PocketOption]

Oil rebounds, gold tries to find support

Oil moves higher

Oil is making a comeback as energy traders focus on tightness in the diesel markets and shift the focus back to n energy supplies and the rising danger of nuclear war in e.  Earlier crude prices got a boost after China’s PBOC stepped up efforts to calm markets and as energy traders await China’s mass COVID testing results, which could lead to even more lockdowns.

The oil market has priced in enough demand destruction from China and crude prices should start to find strong support around the USD 100 level.

Gold

Gold prices are trying to find support here now that China's PBOC is stepping up efforts to support the economy and as the move higher with yields continues to show signs of exhaustion.  Gold investors are hoping prices can hold the USD 1900 level heading into next week's FOMC decision, but if risk aversion remains the dominant theme that won't happen.

Gold is trading more like a risky asset right now than as a safe-haven and that leaves it vulnerable here.  If the war in e sees further escalations, that could be the catalyst to send prices sharply lower.

Source: Oil rebounds, gold tries to find support