OIL
Brent oil prices are rising for a second consecutive session, as optimism over demand continues to dominate the sentiment of investors. It is interesting to note that the current gains occur alongside a US dollar revival, a scenario that usually is bearish for oil. The price of the barrel is finding support as the reopening of the Chinese economy, following the end of the zero-covid policy, is expected to drive a significant increase in demand for crude this year. At the same time, the earthquake in Turkey forced the shutting down of a major export terminal, responsible for one million barrels per day, exacerbating supply side pressures and contributing to increases in oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
GOLD
Gold prices steadied during early Tuesday trading, remaining however close to the one-month lows touched on Friday. Market expectations shifted at the end of last week, when a hotter than expected US jobs report shocked the markets and triggered a dollar rebound that gave gold prices its worst weekly performance since July. Many had been expecting a Fed pivot on interest rates at some point later in the year, however that scenario has become far less likely to the eyes of many after the labour market showed an unexpected vitality. The impact on gold prices was immediately felt, as the rising dollar weighed on the precious metal. Against this background, traders will pay close attention to the declarations of the Fed’s Chair Jerome Powell later today, looking for clues on the central bank’s future monetary policy that may impact the value of the dollar, and therefore that of gold.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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