Oil and Gold daily analysis
2023.02.07 13:10
Oil and Gold daily analysis
Oil
Today, oil prices are rebounding, continuing their strong start to the week. The current rebound is largely to blame for the apparent success of China’s transition from zero-Covid to living with it. Demand and competition will naturally rise significantly in response to a robust recovery.
However, markets have been essentially range-bound since the beginning of December, albeit within a large range, and the most recent recovery simply brings the price back into the middle of that range. Prices may have been a little higher on Monday as a result of the temporary suspension at the Ceyhan terminal following the region’s earthquake. However, given that it is likely to be lifted as soon as no damage is discovered, it is unlikely that it played a significant role in price movements.
Gold
The sell-off appears to be at a standstill around $1,860, where it has found some support in recent sessions. This was a significant level on the way up last month as well, but given how significant the rally was from the beginning of November until last week, I think it may not be the end of the correction.
Since $1,900 has been such a significant area of support in recent weeks, we might see gold pare some losses at that point. A fall could attract interest to $1,820-$1,830, a significant first test.
