Oil prices were under further pressure yesterday and dropped below the critical $100 level as traders remain concerned about a recession. The worst of the supply crisis could also be behind us as no further sanctions on Russian oil are expected.In addition, the US rig count numbers are as high as they can be, and Saudi Arabia continues to assure markets that it has enough spare capacity to meet demand.
Today, we see demand returning for Brent and crude after the sell-off over the last two days. Brent oil prices are flirting with the 200-day SMA on the daily time frame, which can support prices.
Gold
Gold is on track to record a brutal week. The sell-off over the last two days has been driven by dollar strength. Traders continue to bet that the Fed's commitment to controlling inflation is unconditional until inflation returns to their target of2%.
Several Fed members are speaking today which could bring higher volatility for the yellow metal. In addition, traders will also be keeping an eye on the ECB's Account of its Monetary Policy Meeting. There are concerns about recession in the Eurozone which could increase demand for gold