Oil higher, gold shines

Oil

Crude prices are rallying as China’s robust demand will likely lead to rising inventories and increased activity for refiners. ​ The short-term crude demand outlook is looking strong as the US labor market remains strong and on China’s reopening momentum. US recession fears are still here and they won’t be going away anytime soon, so WTI crude might hover around the $80 to $85 region.

Oil pared some of its gains after the EIA crude oil report showed demand bounced, shrugging off the expected rise in inventories. ​ A stockpile build of 8.4 million barrels, was more than the early forecast of a draw of 1.8 million, but slightly higher than yesterday’s API’s build of 7.6 million barrels.

Gold

Gold prices are rallying as investors seek safety as recession and default risks won’t be going away anytime soon. ​ Mixed US data continues to support the idea that the Fed might need to do more tightening given how strong the labor market remains, but the rest of the economy is weakening. ​ Gold will look even more attractive if the US is viewed as likely having a recession in the second half of the year, which could mean earnings will contract far worse than markets are pricing.

If gold doesn’t make a quick run towards the $1935 level, it could consolidate around the $1900 region.

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.

• Stocks drop on tightening and growth fears, Fed speak, Treasury uses special measures, US data, bitcoin finds support ahead of $20k – 19 January 2023
• Oil higher, gold shines – 19 January 2023
• Mid-Market Update: Stocks drop on tightening and growth fears, Fed speak, Treasury uses special measures, US Data, Oil higher, Gold shines, Bitcoin finds support ahead of $20k – 19 January 2023

• SEO Powered Content & PR Distribution. Get Amplified Today.
• Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
• Source: https://www.marketpulse.com/20230119/oil-higher-gold-shines/