fbpx

Oil pulls back, gold stable, bitcoin recovery

Oil pulls back, gold stable, bitcoin recovery - MarketPulseMarketPulse

image

Home/Commodities/Crypto/Metals/Newsfeed/Oil

Share 0

Oil slips after another bright start

Oil started the day on the front foot but slipped as the US open approached and have been lower since.

It’s been a remarable rally for crude in recent months, with OPEC+ giving it one final push last week after deepening cuts, thanks largely to Saudi Arabia. The decline came just as WTI hit its highest level in around a year, which may have contributed to some profit taking.

Near-term risks remain for oil markets, with Covid causing huge problems in many countries which means we’re likely to see more restrictions for longer. The action from OPEC+ may limit the downside but a little profit taking may kick in soon enough.

Gold flat as yields pull back

Gold is relatively flat today after stabilizing around $1,850 in recent sessions.

This was a major area of support late in the summer so may be having a psychological impact this week. Fed policy makers have eased concerns about a taper tantrum which has taken the edge off yields and, in turn, the pressure off gold prices.

Whether that will lead to a sustained decline in yields or not is another thing. A move back below 1% on the 10-year could be a positive sign for gold, which has a lot of lost ground to make up after it crumbled last week.

Slow comeback for bitcoin

Bitcoin is staging its comeback, albeit at a more moderate pace than we’ve become accustomed to seeing.

ECB President Christine Lagarde’s scathing verdict on bitcoin were brished aside by a community used to being cast aside by people in positions of power.

While some may even view this positively, a badge of honour even, it shows the challenges the cryptocurrency faces in becoming mainstream even if it can become a more stable currency, which it has shown no signs of doing.

Lagarde dismissed its prospects of becoming a currency and correctly labelled it a highly speculative asset. It has many enormous obstacles to overcome.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

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 BNN. 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.

Craig Erlam

Latest posts by Craig Erlam (see all)

Original author: Craig Erlam

Copyright

© MarketPulse

Yields to dollar resurgence
US Market Update – Fed eases taper tantrum fears
 

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/

 
     
 

Broker Search

Latest Spot Rate

 
25 January 2021
RIYADH, Saudi Arabia, Jan. 25, 2021 /PRNewswire/ -- Fund plans to grow its assets under management to USD1.07 trillion by end of 2025 and contribute USD320 billion to Saudi Arabia's non-oil GDP PIF has created 10  new sectors, launched over 30 new co...
25 January 2021
SINGAPORE, Jan. 25, 2021 /PRNewswire/ -- StashAway, Southeast Asia's largest and fastest-growing digital wealth manager for both retail and accredited investors, has announced that they're managing more than US$1billion (SG$ 1.35billion). Since Stash...
25 January 2021
KUALA LUMPUR, Malaysia, Jan. 25, 2021 /PRNewswire/ -- StashAway, Southeast Asia's largest and fastest-growing digital wealth manager for both retail and sophisticated investors, has announced that they're managing more than US$1billion (MYR 4.05billi...
23 January 2021
Key risk events today: ECB President Lagarde Speaks. (Previous analysis as well as outside sources – italics). EUR/USD: Weekly gain/loss: +0.79% Weekly close: 1.2170 Weekly perspective:...
23 January 2021
First, a review of last week's events: - EUR/USD. We published a chart seven days ago that clearly showed how the correlation between the S&P500 index and EUR/USD was broken in early January. But now everything is back to normal: the S&P500 c...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.