Glacial consolidation
Oil markets are continuing to consolidate, albeit at a glacial pace, and today we’re seeing prices creep higher just as they near the lows from earlier this month. While traders remain optimistic about China, they have become less so about the global economy as more and more rate hikes have been priced in.
If one of those narratives changes, or we see a significant shift in another driving force in the oil markets – Russia, OPEC+, etc – then we could see prices break out of this range. But they seem rather comfortable within them, mirroring the feeling of consuming countries and producers alike, it seems, both of which have been much less vocal on the price and imbalance in the markets.
Gold correction run its course for now?
The FOMC minutes were another setback for gold, reaffirming the hawkish messages we’ve heard from policymakers for weeks now. The yellow metal has once again run into some support around $1,820 though, which may reaffirm its position as a temporary barrier to the downside. Of course, if the economic data between now and the next Fed meeting in a month doesn’t play ball, it may not hold for much longer. But the correction does seem to have run its course for now which could lead to further profit-taking and a retracement higher.