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Oil jumps, gold lower as dollar rally halted



Oil higher on soft US data

Crude prices are rallying as the dollar’s rally came to abrupt halt on growth concerns. ​ A weakening US economy should be bad news for oil, but today’s soft economic readings suggest that OPEC+ will easily be able to justify production cuts soon. ​ The oil market will remain tight whether business activity continues to weaken sharply or if economic growth remains choppy.


Gold got its groove back after the dollar plunged after a round of ugly US economic data suggests Fed Chair Powell won’t be able to stick to the aggressive tightening script for much longer. ​ I don’t think anyone expects Powell to go Volcker on us and that has provided some support here for gold. ​ Powell still needs to justify his hawkish stance at Jackson Hole, but it seems markets may not believe him.

Gold looks like it is poised to stabilize above the $1750 level before we hear from Fed Chair Powell on Friday.

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