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Oil rallies on Omicron, gold drifting – MarketPulse

Another rally for oil

The omicron is not-as-bad-as-we-thought trade continued to push oil markets higher overnight, with positive US data reinforcing the theme that the momentum of US recovery continues and that the US consumer is alive and well and spending.

Brent crude rose 1.55% to USD 76.75 a barrel. WTI rallied by 1.0% to USD 73.70 a barrel. With some US futures closed in Asia, only Brent crude is trading this morning and some profit-taking is evident. Brent crude is easing 0.70% to USD 76.20 in thin trading. USD 74.75 and USD 74.45 are initial support, with resistance at USD 76.90 a barrel, the 100-day moving average (DMA), capping gains overnight. WTI rose through resistance at USD 73.00 which becomes support. Resistance is at USD 74.10 initially, its 100-DMA.

Gold side-lined overnight

In line with tight ranges in currency markets and US bonds, gold was side-lined overnight, rising just 0.27% to USD 1808.50 an ounce. With gold futures closed in Asia, it remains around those levels.

Gold’s attempts to stage a meaningful recovery remain unconvincing, with traders cutting long positions at the very first sign of trouble intra-day. Gold lacks the momentum, one way or another, to sustain a directional move up or down. That said, gold could extend its gains into the end of the weak if growth sentiment remains ascendant.

Gold has formed a rough double top around the USD 1815.00 region which will present a formidable barrier, ahead of USD 1840.00. Support lies at USD 1790.00, followed by USD 1780.00 an ounce. USD 1790.00 to USD 1815.00 continues to be my call for the range for the week.

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.

Jeffrey Halley

With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes.

He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays.

A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia as well as in leading print publications including the New York Times and The Wall Street Journal, among others.

He was born in New Zealand and holds an MBA from the Cass Business School.

Jeffrey Halley
Jeffrey Halley

Read More : Oil rallies on Omicron, gold drifting – MarketPulse

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