Oil and Gold monitor inflation
2023.01.12 08:37
Oil and Gold monitor inflation
After a strong recovery on Wednesday, oil prices have stabilized this morning. Following the jobs report from last week, enthusiasm is growing, and a positive reading today could further fuel that.
After it became clear how high inflation would rise this year, investors could realistically have hoped for a softer landing or even a recession avoidance.
A better year than anticipated and an increase in crude demand could result from a softer landing for the United States and possibly other nations, as well as a robust economic recovery in China following the current COVID wave.
Obviously, this case focuses a lot on promising scenarios, but they also seem more and more likely.
The lower end of a range that has been a significant point of support and resistance in recent years, $1,880, is where the rally is continuing to stall.
If a positive report serves as a catalyst for a break above, the range between $1,880 and $1,920 could be crucial once more as a barrier of resistance or as a sign of renewed bullishness.
In either case, the release could result in a lot of volatility.
