Oil Keeps Rising, Gold Awaits Jobs Report
2022.10.07 11:58
It is getting hard to bet against higher prices. This week’s OPEC+ decision was a game changer for the oil market, as it signals tight conditions will remain throughout this winter. Energy traders are not really believing that the Biden administration will be able to do anything quickly to stop the rally in oil prices.
The NOPEC bill seems like it has a lot of barriers and won’t be an immediate course of action. The SPR has been tapped already and the US is dangerously depleting inventories which could make them more dependent on OPEC in the future. Sanction relief for Venezuela won’t come easy and does not seem like a viable option right now.
A strong is capping crude’s gains today and it looks like we could see crude continue to consolidate until tomorrow’s NFP report.
Gold dips on hawkish Fed
prices softened after another round of hawkish Fed speak. Gold is entering consolidation mode as traders await . The lead up to the jobs report saw a mixed round of employment readings that has many bullion investors on standby. A hot labor market and strong wages could keep the bond market selloff going and should decide what will be gold’s next major move.
If nonfarm payrolls does not deliver any major surprises, gold may still be stuck in a trading range between $1700 and $1740 as traders will wait for next week’s inflation report.
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