Oil Rebounds, Gold Eyes Central Banks
2022.09.20 06:19
prices bounced back well at the start of the week, as choppy trading conditions were seen across various asset classes. is trading back around $90 a barrel after briefly dipping towards the lows of the last six months, where we continue to see substantial support.
OPEC+ fell short of its output target by 3.583 million barrels per day in August in a further reminder to the markets of the tight conditions we continue to operate within. It also highlights how irrelevant the 100,000 barrel increase and the subsequent cut were. Still, I expect more warnings of output cuts if prices do break their six-month lows.
A Troubling Week For Gold
It hasn’t been the best week for , although it did manage to find its feet a little over the last couple of sessions. Still, it could be in for a lot more turbulence this week, considering the scale of tightening that’s coming on Wednesday and Thursday alone.
If the takes the plunge with a 1% hike, it could be a very unpleasant week for gold. It’s run into resistance at around $1,680 over the last couple of sessions which makes sense from a technical perspective, being such a long-standing level of support. We may see it linger below in the run-up to the Fed decision amid fear of a nasty rate surprise.
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