Oil rallies as China eases covid rules, gold shines

[PocketOption]

Oil rallies as China eases covid rules, gold shines

Oil

Crude prices rallied as hopes grow that China will continue to loosen their COVID rules and on expectations that OPEC+ will do whatever it takes to keep oil prices supported. ​ Energy traders are eagerly awaiting an OPEC+ decision that could see them keep output steady or deliver a small cut. If China didn't signal a slight covid easy shift, the probability of a production cut would have been much greater. ​

Oil should find a range as we await the OPEC+ decision. ​ Key levels for WTI crude include major resistance at $84.55 and key support at the $81.20 level. ​

Gold

Gold prices catapulted above the $1,800 level as inflation cooled and on hopes that the Fed could soon be done tightening. ​ Tactical traders continue to send the dollar lower and that is good news for bullion. Gold had strong resistance at $1800 and if it can hold that post-NFP, bullish momentum could be strong. ​ Leading labor indicators have been mixed but overall support a weaker pace of hiring. ​ Unless the nonfarm payroll report shows companies are clearly still in hiring mode, gold could remain in rally mode. ​

Source: Oil rallies as China eases covid rules, gold shines