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Commodities and Cryptos: Oil higher as OPEC+ can’t meet commitments, Gold rallies, Bitcoin above $60k

Oil

Crude prices are rallying after OPEC+ failed to hit their production goals and both Kuwait and Iraq signaled they support keeping the gradual 400,000 bpd output plan intact.  The world leaders are likely to be disappointed with the worsening oil market deficit that doesn’t seem like it will get any help from OPEC+. 

The idea of $100 is becoming commonplace as some analysts such as Bank Of America’s Blanch makes a case for $120 oil by the end of June 2022.  The oil market knows Iran won’t get immediate sanction relief, that the crude demand outlook should only improve as global COVID cases continue to trend lower, and that US production will be flat and OPEC+ will stay with a gradual output increasing strategy. 

Gold

Gold prices are rallying as traders await a busy week of central bank rate decisions that should inflation fears are motivating central banks into tightening mode.  Gold has performed nicely despite the rise in global bond yields as some investors grow cautious of the outlook for next year. 

Rapid tightening cycles and unbalanced recoveries could trigger demand for bullion over the coming quarters.  Gold seems poised to consolidate around the $1800 level until financial markets get through the Fed taper announcement and pushback in signaling when rate hikes could happen. 

Bitcoin

Bitcoin prices are hovering above the $60,000 level as volatility eases as institutional interest grows.  According to Glassnode, it seems, the Whales (accounts that hold between 10,000 and 100,000 bitcoins) are accumulating at a faster clip than the smaller trader.  With inflation running wild and central banks poised to tighten monetary stances, a weaker dollar could be what is needed to help send bitcoin towards the $70,000 level. 

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This is a big week for bitcoin, as currency volatility will be elevated as Wall Street braces for tightening messages from the RBA, Fed, CNB, and BOE.  If traders continue accumulating bitcoin as central banks shift to rate hiking cycles, that could satisfy many traders’ beliefs that bitcoin prices can run much higher.  

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

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.
Ed Moya
Ed Moya

Source: https://www.marketpulse.com/20211101/commodities-cryptos-oil-higher-opec-cant-meet-commitments-gold-rallies-bitcoin-60k/

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