Oil pushes on but major resistance ahead
Oil prices are continuing to make steady gains, with the latest boost coming from the Fed’s upbeat economic assessment and the surprise inventory draw on Wednesday. The rally continues to look like it’s low on fuel though and with WTI closing in on historic support and resistance around the USD49-USD50 mark, I wonder whether we’re already seeing some profit-taking, which may continue into the end of the year. OPEC+ has made its move; now it’s time to wait and see how the next couple of months of the virus unfolds.
Gold buoyed by Fed
Gold prices were surprisingly buoyed by the Fed announcement, despite the lack of new action. The commitment to a longer period of purchases appears to have done the trick, with the yellow metal back around last week’s highs and looking far more promising once again. The dollar index breaking below 90 and languishing at two and a half year lows isn’t doing gold any harm either. We may not scale the heights it hit earlier this summer but gold may have its sights set on USD2,000 once again.
Bitcoin smashes through USD20,000
Bitcoin has got its mojo back after breaking USD20,000. It may have taken its time after coming close late last month but it’s broken it in typical bitcoin fashion. It’s smashed through into new territory and exploded higher, adding more than 16% since yesterday. The question now is where will it stop? These are extraordinary gains in such a short period of time and bitcoin has a history of doing well amidst the hype. Can USD30,000 be on the cards by Christmas? Why not.