Crude demand outlook takes a hit, gold stumbles on strong dollar

image

Oil

Oil bulls thought they were in the clear, but ‘just when they thought they were out, they pull me back in.’ ​ Oil’s true enemy is global growth fears and they are not going away anytime soon. ​ In addition to a weakening crude demand outlook, Iran reportedly gave into a ‘red line demand’ that might be a gamechanger in reviving the elusive nuclear deal. ​ The crude demand outlook is taking a big hit from elevated risks that Europe’s recession will be severe and as several Chinese companies are following the government’s advice to conserve energy.  King Dollar is also making a return so that could contribute to further momentum selling across all commodities, especially oil. ​

Gold nervously eyes Jackson Hole

Gold prices are weakening as King Dollar returns as investors brace for a potentially hawkish speech by Fed Chair Powell at the Jackson Hole Symposium on Friday. Gold will eventually settle on a trading range, but it seems the floor might be a little lower as the risks of energy and food inflation could keep the Fed remaining aggressive with rate hikes into the new year. ​ ​ ​


Trading analysis offered by Flex EA.
Source

0 Comments