Oil and gold both take a tumble

[PocketOption]

Oil and gold both take a tumble

Oil

Crude prices are sliding as the dollar rallies on bets that the Fed might not be tightening. ​ Good news for the economy is now bad news for the crude demand outlook as economic resilience will force the Fed to kill the economy. Oil is becoming an easy trade, as it will track the dollar and not so much anything else. If China's economic momentum returns that should help stop the dollar strength we are currently seeing.

Gold

Gold has lost its luster as debt ceiling deal momentum continues and recession fears ease. ​ King dollar’s return has also been a drag for gold and that reign might last a while longer. ​ Gold should find some support around the $1950 region, but if that breaks it could get ugly fast. Despite all the optimism with debt ceiling negotiations and some stability with the regional banks, the demand for safe-havens is quickly evaporating.

Gold might struggle to muster up a rebound if we don't see a major setback in debt deal talks or if we don't have a new risk to the outlook emerge.

Source: Oil and gold both take a tumble