• Welcome to forex.pm forex forum binary options trade. Please login or sign up.
 

Oil rebounds, gold falls as pressure remains on Fed

Started by PocketOption, Jan 09, 2023, 01:05 pm

Previous topic - Next topic

0 Members and 1 Guest are viewing this topic.

PocketOption

Oil rebounds, gold falls as pressure remains on Fed

FacebookTwitterEmail

Oil


Crude prices were due for a rebound after one the worst starts of a year. It's been a few decades since oil had this bad of a start and energy traders jumped all over the news that the Colonial Pipeline had to halt operations after a leak occurred. The shutdown should be over on Saturday, but the unexpected disruption helped oil prices stabilize. ​


The EIA crude oil inventory report was mixed but one of the big takeaways that it showed is demand is falling off a cliff. ​ Gasoline demand fell the most since March 2020, crude oil and distillate demand posted significant declines from a week ago. ​ Some traders are focusing on the declines in both gasoline and distillate inventories. ​ Crude exports surged and imports declined as flows from the Keystone Pipeline were impacted. ​


Oil is trying to rally but demand concerns are keeping the gains small. ​ The Saudis are slashing prices as the short-term crude demand outlook seems like it won't quite get a major boost from a robust China reopening. ​


Gold


Gold prices weren't ready for a trip to $1900 and investors quickly locked in profits yields rose and the dollar staged a comeback. Gold is struggling as the latest round of economic data suggests the Fed will have a lot of pressure on them to tighten further. ​


Labor market weakness is around the corner and until that happens, gold might remain stuck above the $1800 level. ​


Source: Oil rebounds, gold falls as pressure remains on Fed