Oil Breaks Higher, Gold Choppy After Nonfarm Payrolls
2023.07.11 04:07
Oil finally breaks higher and with decent momentum
Another strong showing on Friday saw oil prices finally make a significant move higher, with breaking above $77 and ending the series of lower highs in price. There still remain obstacles above but this could be a very significant breakout in the price after such a long period of consolidation.
What’s more there doesn’t appear to be any shortage of momentum behind the move; in fact, it has seemingly increased which could be another bullish signal. The next obstacle for Brent could be $78.50 where it failed in June and appears to be seeing some resistance again. Saudi Arabia and Russia may finally get what they wanted with the recent cuts.
Gold choppy after NFP, US inflation data up next
It’s been a choppy couple of weeks for which appears to have consolidated again, this time in the $1,900-$1,940 range. There hasn’t been any particularly good news for the yellow metal of late and Friday’s jobs report seemingly gave with one hand and took with the other.
Perhaps Wednesday’s data will change that but for now, gold traders appear quite uncertain about what lies ahead and therefore what it ultimately means for the yellow metal. They aren’t giving up easily but a hotter inflation number could change that.
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