It’s been quite the volatile week for oil, with Chinese rumors not going away, restrictions and mass testing being undertaken once more and the global economic outlook seemingly changing on a daily basis. There’s no such thing as a boring week these days.
Today it’s the improvement in economic sentiment on the back of that inflation data alongside a modest relaxation of Chinese quarantine measures that are lifting prices. A press briefing is expected tomorrow which may shed further light but if this is as good as it gets, investors have got way too carried away.
Brent remains in the middle of its $90-$100 range for now but more bullish developments like this, or a further relaxation of Chinese restrictions on Saturday may test the upper end of that.
Gold Shines Once More
Gold bulls have been waiting for this week for a long time. A week (or so) in which the Fed signaled a potential slowing of rate hikes and the CPI data displayed a significant and broad-based decline. The yellow metal is shining once more and is back at levels not seen in almost three months. It’s seeing some resistance around $1,760 now and may see more around $1,780 but at this point, gold bulls may have their sights set on $1,800.