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.
X-Trade Brokers Dom Maklerski S.A. does not take responsibility for investment decisions made under the influence of the information published on this website. None of the published information can be treated as a recommendation, disposition, promise, or guarantee that the investor will achieve a profit or will minimize risk using the information published on this website. Transactions including investment instruments, especially derivatives using leverage, are in its nature speculative and can provide both profits and losses that can exceed the initial deposit engaged by the investor.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0450 German sentiment data
EUR/USD stays in positive territory above 1.0450 after retracing a portion of its bullish opening gap. The data from Germany showed that the IFO - Current Assessment Index declined to 84.3 in November from 85.7, while the Expectations Index edged lower to 87.2 from 87.3.
GBP/USD pulls back toward 1.2550 as US Dollar sell-off pauses
GBP/USD is falling back toward 1.2550 in the European session on Monday after opening with a bullish gap at the start of a new week. A pause in the US Dollar decline alongside the US Treasury bond yields weighs down on the pair. Speeches from BoE policymakers are eyed.
Gold price manages to hold above $2,650 amid sliding US bond yields
Gold price maintains its heavily offered tone through the early European session on Monday, albeit manages to hold above the $2,650 level and defend the 100-period Simple Moving Average (SMA) on the 4-hour chart. Scott Bessent's nomination as US Treasury Secretary clears a major point of uncertainty for markets.
Bitcoin consolidates after a new all-time high of $99,500
Bitcoin remains strong above $97,700 after reaching a record high of $99,588. At the same time, Ethereum edges closer to breaking its weekly resistance, signaling potential gains. Ripple holds steady at a critical support level, hinting at continued upward momentum.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.