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Oil edges lower, gold jumps, bitcoin on the rise

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Settling down?

It’s been another turbulent few weeks in oil markets from global growth concerns to super-sized OPEC+ output cuts and it seems they’re yet to fully settle down. Brent has seen lows of $82 and highs of $98 so perhaps what we’re now seeing is it finding its feet somewhere in the middle. Whether that will satisfy the oil alliance only time will tell but there will be some relief that it’s not back in triple figures already, even if that is a result of the ever-worsening economic outlook.

An encouraging rebound

Gold is seeing an encouraging rebound after another pretty terrible week. It’s trading more than 1% higher on Monday after slumping more than 3% last week. Lower global yields and a slightly softer dollar are probably behind the move, with traders no doubt hoping that peak inflation and rate pricing are nearly in sight. The recent economic data hasn’t offered cause for much optimism but that could change over the coming months, with central banks now surely not far from their terminal rates. That could favour gold, especially as the economy falters. Resistance ahead could be found around $1,680 and $1,700, although some traders may be encouraged by the failure to breach September’s lows.

A positive start to the week

Bitcoin’s relationship with risk assets hasn’t been perfect recently but the last week has seen it look far more aligned. The US inflation disappointment almost sent it into a tailspin but then the wild turnaround happened and it quickly bounced back and powerfully. It came within a whisker of $20,000 once more before pulling back and now it’s trading on the front foot again with its sight set on that level. The gains today mirror those in equity markets, with risk assets more broadly getting the week off to a good start.

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.

Craig Erlam

Craig Erlam

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