Oil Range Trading, Gold Rebounds
2023.03.03 09:34
Back in the middle of the range
A decent week for comes to an end slightly in the red, perhaps a sign of some profit-taking kicking in. Prices have fluctuated in a range for months now and the current price sits more-or-less in the middle of that range. While traders are becoming more optimistic about the Chinese recovery, the risks to the global economy may be increasing as interest rate expectations have risen.
The range does appear to be gradually tightening but remains quite large and there appears little appetite for a breakout at this moment in time. Perhaps the US data over the next couple of weeks will change that.
Paring losses ahead of a big week for the US
Gold is bringing an end to a run of four successive weekly declines, rising around 2% over the last five days after running into significant support at around $1,800. This followed a near-8% decline from the highs at the start of February so could simply be a case of profit-taking ahead of a big week of US data and Fed speak. The $1,780-$1,800 support below remains crucial and should it break over the next couple of weeks, it may well signal a much more hawkish shift in US monetary policy.
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