Oil
Crude oil is trading lower today as investors are banking some of yesterday’s gain. The drop in crude oil inventories supported the surge in oil prices on Wednesday. Oil stockpiles fell by 4.7 million barrels, although the drop could be mainly because companies are discouraged from storing oil barrels owing to year-end tax considerations.
The recent developments of crude oil inventories and production falling provide a rosy outlook for oil prices as supply seems to be lagging demand despite Omicron-related restrictions being enforced across the globe.
Gold
The drop in the dollar index by 0.37% on Wednesday supported the surge in gold prices. Furthermore, nations' raising restrictions in response to rising coronavirus cases has spooked investors into hedging their risks by getting exposure to gold as well.
However, the Fed's decision to raise interest rates as soon as April could cap significant gains for the precious metal, as rising interest rates increase the opportunity cost of holding gold and hence push its price down.