Gold and oil are gaining momentum
2023.01.16 11:46
Gold and oil are gaining momentum
Today, oil prices are slightly lower, but they have mostly recovered their earlier losses. Since having a bad start to the year in the first few sessions, they have been on a good run. With the possibility of fewer rate hikes and possibly even cuts before the end of the year making the headwinds less severe, there is no doubt that the increased optimism regarding the economy is playing a significant role in that.
China is also a big part of everything. Naturally, it is difficult to accurately gauge the impact that the current wave is having on the economy, but there is plenty of optimism for the remainder of the year, particularly the second half. It might even arrive as early as the second quarter, but that depends a lot on how quickly it spreads right now. WTI may now be a little bit lower around $80-85, stabilizing in the $85-90 range.
After reaching a high earlier in the session, gold is slightly lower today. Between $1,880-$1,920, it is encountering some minor resistance just above the upper end of a key zone. This could cause it some trouble, having done so more than once in the past however that doesn’t seem, by all accounts, to be the situation. In recent days, it has rallied strongly once more, and momentum has also been rising.
With momentum, a close above $1,920 could bring attention to $2,000, a level it hasn’t traded above since March of last year, when it only held there for about a week before falling back below.
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