Oil rises, gold vs rising real yields

Oil

Crude prices remain volatile as energy traders grapple with a deteriorating demand outlook that is still vulnerable to shortages. Supply risks and tight market conditions should give oil some support above the $80 level, but a quicker tumble to a global recession will keep prices heavy. ​

Oil pared gains after eurozone consumer sentiment plunged to a record low as the energy crisis and aggressive central bank tightening is killing economic growth prospects. ​ ​ ​

Gold

Gold prices are steadying as FX volatility sends the dollar everywhere. ​ Aggressive moves higher with global bond yields are not having that much of a negative impact on gold. Gold is clearly going to become a safe-haven as the global outlook deteriorates and as Wall Street grows confident that we are nearing the peak with Treasury yields. ​

Gold has massive support at the $1660 level and if it can stabilize above there, prices could eventually make a move back above the $1700 level.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Senior Market Analyst, The Americas at OANDA

With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies.

Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news.

Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal.

Ed holds a BA in Economics from Rutgers University.

• A historic day in FX (BOJ, BOE, SNB, SARB, BCB), global tightening sends stocks lower, bitcoin surprisingly steady – 22 September 2022
• Oil rises, gold vs rising real yields – 22 September 2022
• FOMC React: Hard landing will lead to a pause, housing market cools, Putin’s escalation, bitcoin stabilizes – 21 September 2022