Oil still volatile near lows, gold recovers early losses, bitcoin slips further

Oil volatile near lows

Oil prices remain volatile after inventory data published by EIA reported a substantial 7.9 million barrel build last week. Brent saw its gains on the day wiped out while WTI slipped back below $70. We’re seeing oil recover some of those losses today but it remains not too far from its 2023 lows.

Brent Crude Daily Chart

Source – OANDA on Trading View

There has been a little more cause for optimism in recent days – EIA data aside – with the US Federal Reserve pausing its tightening cycle after another promising inflation report. This followed a very good eurozone report – although today’s forecasts suggest the ECB isn’t getting carried away – and interest rate cuts in China. These are small positives but it could be enough to stop crude from making fresh lows for the year.

Gold recovers after initial post-Fed slide

Gold prices have rebounded today after initially slipping below $1,940 earlier in the session. The yellow metal appeared to be responding to the hawkish pause from the Fed as markets appeared to price out rate cuts this year alongside a strong chance of another hike in July.

But it’s recovered in the last couple of hours, perhaps alongside a strengthening euro which is pressuring the dollar. Jobless claims were also much higher than anticipated which possibly points to some cracks appearing in the labour market. Although as we’ve seen in recent months, that data can be noisy.

If gold ends the day back in the $1,940-$1,980 range, it would perhaps be surprising given everything we’ve seen and heard this week. It will be interesting to see if that continues to hold as the narrative on the Fed does appear to have shifted in recent days. Unless of course, traders are gradually deciding to disregard its forecasts as they have in the past.

Gold Daily Chart

Source – OANDA on Trading View

Bitcoin has almost wiped out half of 2023 gains

Bitcoin fell to its lowest level in three months yesterday and remains under pressure today. It broke below $25,000 in the process, a region that looked like a significant area of potential technical support which will make a further decline below here all the more interesting. The next area of technical support may be found around $24,000, which would almost represent of 50% correction of the 2023 rally.

Bitcoin Daily Chart

Source – OANDA on Trading View

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Former Craig

Former Craig

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.

Former Craig

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