Speed bumps ahead

Oil prices have been choppy this week after climbing back towards their late December/early January peaks. It would appear the rally is running short of momentum amid a week of less promising data from the US and a downturn in market sentiment, more broadly. That’s to be expected. After all, it’s not like we were going to go from the doom and gloom of 2022 into relentless optimism just like that. It’s going to be a bumpy ride this year and this week has simply been the first speed bump of many. With so many other factors also influencing the oil price, I expect volatility is going nowhere.

Gold not far from record highs

Another rally on Thursday saw gold surpass last week’s peak but already it’s running into resistance and trading slightly lower on the day. While not the end of the world, it’s clear that momentum is fading which, following a strong rally since November, could suggest a correction is possible. The environment remains favourable for gold but a correction could be healthy considering it’s now rallied almost 20% from its early November lows and sits a little over 6% from all-time highs.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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.

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.

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