Oil
Crude prices are rebounding alongside equities on optimism holiday travel will remain intact for most vaccinated individuals. Both the US and UK are not headed to lock downs and that suggests the short-term outlook might not get completely derailed by the Omicron variant.
US daily coronavirus infections have surged to levels not seen since September, but with 77.4% of the over 5-year old population vaccinated with at least one dose, the economy will not see widespread shutdowns.
Europe’s energy crisis is battling diesel shortages and that might not improve anytime soon. The short-term bottom for crude prices appears to be in place.
President Biden’s afternoon speech provided another reiteration that he believes gasoline prices will fall. Biden did not provide any hints that further action would be taken to keep sending energy prices down.
Gold
Gold prices softened as US stocks advanced on strong earnings and optimism the short-term economic impact from Omicron will be quick. The aftermath of Senator Manchin’s rejection of Biden’s Build Back Better legislation did not trigger a massive collapse in gold as positive sentiment still remains that Democrats will get a deal done early next year.
Gold prices are figuring out its year-end trading range somewhere around $1800 and that should remain intact as trading volumes decrease. Gold’s long-term outlook remains bullish as investors may have aggressively priced in Fed tightening for next year.
Cryptos
Cryptocurrencies are rebounding across the board after Fitch Ratings stated improved regulation could moderate stablecoin credit risks. Stablecoins remain vulnerable to US regulation, but it seems the cryptoverse will most likely embrace regulatory clarity.
Bitcoin has been leading the rally and that has many investors believing the bottom is in place. Trading conditions are nowhere near full participation, so unless further catalysts appear, Bitcoin should still remain range bound.