Gold attempts to rebound after testing key support
|After the spike in volatility seen at the start of the conflict, gold appears to have been stuck in a range for the past few days as the situation between Russia and Ukraine seems to be stalling. The precious metal has managed to rebound from the lower limit of the short term trading range around $1915 and after gaining almost 0,75% is trading around the previous reaction area of $1930. While the geopolitical situation remains uncertain, any major events could once again spark a renewed interest for the safe haven asset which has benefited greatly from investor panic by nearing its all time high just a few weeks ago. On the other hand, even if we were to see a pullback, it will be essential to see if the aforementioned support level will manage to hold once again or if the price will extend the downward move this time.
Oil remains uncertain ahead of DOE inventory report
Oil is trading slightly higher today after Russia warned about a sharp drop in oil exports through the Caspian pipeline after infrastructure was damaged by a storm. While it is said that 1 million barrels of daily exports could be in danger, this has added to the rising uncertainty surrounding the key commodity which has experienced significant volatility since the start of the Russia-Ukraine conflict. On the other hand, according to the Wall Street Journal, Chevron told US authorities that it may be able to help Venezuela double its oil production which could be interpreted as a sign that the US is moving in the direction of a deal with the major oil producing country in an attempt to alleviate some of the pressure. In either case, the situation remains unclear and traders await today's EIA inventory report for any indication of how the economy is responding to the rising gas prices and worrying prospects for the energy market.
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