Oil has sight set on USD 100
Oil prices are making decent gains again on Thursday, with Brent once more above USD 90 which is naturally leading to talk of USD 100 oil and when it will happen. The environment continues to be very bullish for oil prices, given supply issues within OPEC+, strong demand, and now, geopolitical risk premiums. It’s hard to see what’s going to stand in the way of triple-digit oil, especially if we see no diplomatic breakthrough between Russia and the West any time soon. And based on Russia’s response to their proposals, it doesn’t seem a breakthrough is on the horizon.
Gold pummelled by hawkish Fed
Stock markets certainly took the Fed decision better than gold did, with the yellow metal falling 1.6% on Wednesday and now another 0.5% today. It seems that weeks of traders embracing gold like an old friend that offers inflation protection have quickly unwound and it’s been quickly cast aside. While it has found some support around USD 1,800 today and may remain supported to some extent out of fear that even five hikes won’t do it, it’s certainly fallen out of favour and may have peaked for now.
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