Oil Buoyed by China data
Oil prices are slightly higher today after paring gains at the start of the week to remain near the highs of the last month or so. Brent crude has mostly traded between $76 and $86 since early December, but the mood appears to have become slightly more bullish thanks to some promising economic data.
The prospect of a soft landing in the US and a shallower economic hit in China from the COVID transition, not to mention a strong rebound, has driven the latest rebound in crude prices, and the narrative on both of these doesn’t appear to be shifting.
The China data was positive, enabling Brent to reverse yesterday’s declines. Now it’s over to Davos and earnings season to get a look at how policymakers and business leaders perceive the latest developments and whether companies are planning for tough conditions ahead.
Gold Paring gains
Gold is paring gains for a second day as the dollar rebounds slightly and yields creep higher. Perhaps we’re just seeing some broader market profit-taking ahead of what could be another eventful week.
Gold briefly surpassed the upper end of what in recent years has been a tough trading zone between $1,880 and $1,920. That may contribute to some profit-taking, with the next major test being $2,000, where gold briefly traded above last March.