Commodities and cryptos: oil higher because OPEC + cannot meet its commitments, gold rally, Bitcoin above $ 60,000

0

Oil

Crude prices recover after OPEC + fails to meet production targets and both Kuwait and Iraq have indicated support for maintaining the phased 400,000 bpd production plan intact. World leaders should be disappointed by the worsening oil market deficit which does not appear to benefit from OPEC + aid.

The idea of ​​$ 100 is becoming mainstream as some analysts such as Bank Of America’s Blanch plead for $ 120 worth of oil by the end of June 2022. The oil market knows that Iran will not get immediate relief from oil prices. sanctions, that the outlook for crude demand is only expected to improve. as global COVID cases continue to decline, and US production will be stable and OPEC + will remain with a strategy of gradually increasing production.

Gold

Gold prices are recovering as traders wait for a busy week for central bank rate decisions which, if inflation fears prompt central banks to tighten. Gold has performed well despite rising global bond yields as some investors become cautious about the outlook for next year.

Rapid tightening cycles and unbalanced recoveries could trigger demand for bullion in the coming quarters. Gold looks set to consolidate around the $ 1,800 level until financial markets go through the Fed’s announcement of the cut and signals retreat that rate hikes may be coming. .

Bitcoin

Bitcoin prices hover above the $ 60,000 level as volatility eases as institutional interest rises. According to Glassnode, it appears that whales (accounts that hold between 10,000 and 100,000 bitcoins) are accumulating at a faster rate than the small trader. With wild inflation and central banks on the verge of tightening their monetary positions, a weaker dollar may be what is needed to help send bitcoin towards the $ 70,000 level.

It’s a big week for bitcoin as currency volatility will be high as Wall Street prepares to tighten messages from the RBA, Fed, CNB and BOE. If traders continue to accumulate bitcoin as central banks go through rate hike cycles, it could satisfy the beliefs of many traders that bitcoin prices can be much higher.

This article is for general information purposes only. It is not an 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 for everyone. You could lose all of your deposited funds.

With over 20 years of trading experience, Ed Moya is a senior market analyst at OANDA, producing late-breaking cross-market analysis, covering geopolitical events, central bank policies and market reaction to company news. . His particular expertise spans a wide range of asset classes including currencies, commodities, fixed income, stocks and cryptocurrencies. During his career, Ed has worked with some of the leading currency brokers, research teams and information services on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently, he worked with TradeTheNews.com, where he provided market analysis on economic data and business news. Based in New York City, Ed is a regular guest on several major financial TV stations including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His opinions are endorsed by the world’s most renowned global news agencies including Reuters, Bloomberg and Associated Press, and he is regularly cited in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.

Ed Moya
Ed Moya


Source link

Share.

Comments are closed.