- Demand for oil continues to decline, resulting in a drop in prices
- Gold soars as Fed rate hike bets are no longer priced in at a full quarter-point rise
- Bitcoin is finding some support at $27200
Oil prices dropped as the dollar climbed and crude demand indicators remained largely negative as Halliburton indicated that customers are clearly motivated by the desire to produce more gas and oil. JetBlue’s positive outlook for robust demand trends during the second quarter is the one good news that came out of the crude market. Energy traders aren’t buying this dip until they have clear signs that the sky has stopped falling. Concerns about China’s recovery aren’t going away until we see strong signs crude demand is improving. Crude prices could rise if Wall Street does not return to its risk appetite.
Gold struggled at first as the dollar made a comeback and investors de-risked. Gold is still considered a safe-haven asset, but it has allowed the dollar a moment in the spotlight. Debt ceiling progress took away some of gold’s appeal, as insiders view President Biden’s re-election announcement as giving a boost to Speaker McCarthy’s chance of getting this bill passed by…