- Oil inventories fall as Saudis raise prices
- Gold rally stalls ahead of $2050
- Bitcoin anchored at $28,000
Oil
Crude oil prices faltered after weaker US economic data was offset by a bigger-than-expected draw in inventories as demand for all products roared back. Energy traders digested a round of US data suggesting the world’s largest economy is heading for a recession, but then had a fairly bullish EIA report on crude inventories that was immediately followed by a decision by the Saudis to raise oil prices to their Asian customers.
In the short term, it looks set to be stuck with higher oil prices as the Saudis have this market wrapped around their finger. Gasoline demand in the US is impressive, and if Americans have big summer vacation plans, that could help drive $100 oil talks.
Gold
Gold’s rally takes a brief timeout before making another attempt at a record high. The demand for safe havens has never been better as recession risks have not been this high in decades, banking concerns remain, and excessive pessimism for stocks. The gold trade is getting a bit crowded, but the macro backdrop is still strongly in its favour. Gold’s immediate resistance comes from the $2050 level, but the all-time high of $2075.57, made in August 2020, may prove much more difficult to break beyond.
Bitcoin
Bitcoin is still holding on to the $28,000 level as crypto traders await a new development in the crypto market. The news cycle has been quite slow when you see some of the biggest moves after Elon Musk changed Twitter’s logo to the Dogecoin symbol or when Ether rallies ahead of the key Shanghai upgrade date.
As earnings season approaches, we’ll hear from the banks in less than two weeks and could hear more concerns about turmoil. The banking crisis is far from over, and it could still turn out to be positive for crypto.
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With more than 20 years of trading experience, Ed Moya is a senior market analyst at OANDA, producing up-to-date intermarket analysis, coverage of geopolitical events, central bank policy and market reactions to corporate news. His particular expertise lies across a wide range of asset classes, including currencies, commodities, fixed income, equities and cryptocurrencies. During his career, Ed has worked with some of the leading forex brokers, 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 financial 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 respected global news outlets, 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.
