Crude prices are little changed as traders refuse to put on any major positions as too much uncertainty persists with the short-term crude demand outlook and while trading volumes continue to fall leading up to the holidays. A force majeure from a key Nigerian export terminal and a weaker dollar have provided some support for oil prices.
The Omicron variant could still lead to more restrictive measures across Europe and Asia, but prices won’t break since OPEC+ can easily adjust its production levels. Oil prices seem like they could go much higher in the New Year once the demand outlook is beyond the current Omicron wave.
Gold Dips After U.S. GDP
Gold prices edged higher as Wall Street remains fixated over the growing list of short-term risks. Omicron remains the focus for most traders, and that should support gold prices to remain close to the $1,800 level. The dollar should start to trade relatively flat into year-end as quantitative tightening by the Fed has mostly been priced in.
Gold dipped after a better-than-expected final reading of third-quarter GDP, which showed slightly more inflation and economic growth. The GDP report saw upside revisions across the board, with the headline revised higher from 2.1% to 2.3%. Personal consumption improved from the preliminary 1.7% reading to 2.0%, while pricing readings edged higher. This data was old but did confirm the narrative of growth remaining strong, and pricing pressures still are approaching their peak.