Oil slides, gold softens PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Oil slides, gold softens

Oil

Yesterday’s bullish triggers for oil prices were quickly undone today. ​ Oil prices declined after flows from the Druzhba pipeline resumed and preliminary analysis of the missile that killed two in Poland was likely an errant missile fired by Ukraine’s defense system. ​ It looks like we aren’t seeing an immediate escalation from the Russians and that has tentatively removed some of the short-term supply risks.

Oil struggled for direction after a mixed EIA crude oil inventory report as stockpiles rose, while fuel inventories declined. ​ It was a report that wasn’t that surprising as gasoline demand improved, diesel demand weakened, jet fuel demand improved as we approach the holidays, and production was steady,

Oil pared losses after the White House noted that ultimately, Russia is responsible for the tragic incident in Poland. ​ Russia might not have sent the missile that killed two in Poland, but the rest of the world is on high alert that the war in Ukraine could easily escalate into a massive conflict with NATO. ​

Gold

Gold is stuck in limbo as the weakening dollar trade appears to be ready for a break. ​ The dollar rout is near key technical levels, so gold might be ready to soften a little bit here. ​ Gold will eventually act like a safe-haven, but right now its primary catalyst is the Fed’s rate hike path, which dictates the direction of the dollar. ​ Today’s hawkish round of Fed speak put some pressure on bullion as policymakers push back on traders who are making calls for a pivot. ​

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.

Ed Moya
Ed Moya

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  • Source: https://www.marketpulse.com/20221116/oil-slides-gold-softens/

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