Oil Reaches 3-Month High, Gold and Bitcoin Edge Lower
2023.07.24 17:38
Oil
prices are tentatively breaking out as expectations remain for the oil market to remain tight despite all global weakness that is emerging. The rally in crude oil is impressive as it occurs as Europe is looking very weak right now, the US is slowing down, and China’s Politburo isn’t expected to unveil major stimulus this week.
Oil is also getting a boost from Wall Street as optimism grows the end of the Fed’s rate hiking campaign appears it could be here. With Europe lagging by a couple months, we could start seeing all the major economies eyeing easing as the next move. Market positioning probably has the oil trade look a lot more attractive than US stocks, so if bullish momentum takes WTI crude to $80, it could have decent momentum behind that move.
Gold
is softening as the dollar catches a small bid following a slight US PMI outperformance to what we saw in Europe. Gold isn’t going to have a major move until we either get a major earnings update that moves sentiment or until we get to the FOMC decision. Gold looks like it might be poised to consolidate between the $1950 and $1970 zone.
Crypto
‘s consolidating trading has seen price action reside closer to the lower boundaries as volatility disappears. Short-term support from the $29,500 level broke this early this morning and if bearish momentum builds, key support could target the $27,500 region. The crypto news flow has been uninspiring, with many traders focusing on OPENAI’s Sam Altman’s Worldcoin crypto project. It will take a fresh catalyst to excite Bitcoin traders and right now it seems the price action is destined for a broadening formation, potentially targeting the $27,500 and $31,500 zone.
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