The oil market is a blood bath as the crude demand outlook took a major hit after Chinese and US trade data showed global demand is sharply weakening. It appears the risk of losing Russian energy supplies is no longer keeping oil prices supported and that has energy traders solely fixated on the demand side drivers.
WTI crude could hold $80 given how strong the US economy remains and now that most of the demand shock from China’s deteriorating COVID situation has been priced in.
Just when you thought gold was out, Wall Street pulls it back in. Gold is rallying as a surge with Treasury yields ease. The dollar rally is in a timeout until the ECB rate decision and that is welcome news for bullion. Gold is tentatively holding the $1700 level and that might get tested tomorrow. Gold is still vulnerable to another massive selloff, but for now it appears to be stabilizing.