Oil Rebounds, Gold Softens
2022.12.13 13:01
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Oil
prices are rising on hopes China’s demand situation will quickly improve and on concerns that supplies will be kept tight by both Russia and OPEC. China’s reopening is coming; it won’t happen overnight, but it will provide a major boost to demand in the outlook for next quarter.
Oil has too much support at the $70 level, suggesting that the recent change in China’s approach to fighting COVID could support a rally toward the $80 level.
Gold
prices are settling below the $1800 level as traders await both a key report and the Fed . Gold has had a strong performance recently as traders widely believe that inflation has peaked, while some are hoping that a soft landing is still possible. The market is pricing in rate cuts next year, which also provides some ammunition for gold bulls.
Gold should have a strong performance over the first half of next year as the Fed would not likely resume tightening if inflation remains high as growth turns negative.
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