- A weaker dollar has helped commodities.
- Shortened Trading Week impacts flows
Oil rally is dead.
As market pessimism grows, crude’s rally hit a wall. The US economy is on the verge of a recession. Yesterday’s shock at the unexpected OPEC+ production was the main focus. Today is all about a weakening economy, and the growing consensus that a recession is imminent. Due to the Good Friday holiday, this week will be a difficult one for traders in energy. Friday’s pivotal nonfarm payroll report is due out. It will not be easy to gauge the reaction to this crucial reading on the US economy’s health.
WTI crude oil should settle around the $80 mark, but if recession fears are stronger, more of OPEC+’s surprise production cuts gains could be returned.
Gold reaches a 13-month high
Gold can’t be stopped. Safe-haven gold flows continue to increase as the economy weakens. JOLTS confirmed the view that the economy is gradually weakening towards a recession. Investors in gold need to see more evidence that the slowing economy’s service sector is a problem. This could be a catalyst for the big rally.
Gold eyes record highs…