Oil Slumps, Gold Lower on Strong U.S. Dollar
2022.12.16 03:59
Oil
Oil prices edged lower as a section of the Keystone pipeline restarted, and global recession risks increased after a wave of central banks delivered another strong round of tightening. Oil’s recent rally is running out of steam as risk aversion runs wild. The might be poised to rally here, which should keep some pressure on oil prices.
Gold
is weakening as markets worry that global central bank tightening will drive recessionary fears and keep the dollar supported here. Traders are still digesting all the and actions, and that should ultimately still have a little room for rates to rise, but the peak is getting close to getting priced in.
Gold’s decline below the $1800 level triggered technical selling that stalled out just before the $1780 region. Gold will eventually resume its safe-haven status, but first, we need to see more traders convinced that the Fed wouldn’t follow through with its hawkish threats.
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