Oil

Crude prices spiked higher after the Keystone Pipeline was shut after a leak in Nebraska. ​ Earlier, Tribeca Shipping Agency reported 19 oil tankers are still awaiting passage through Turkey’s Bosphorus Strait. ​ Today’s headlines appear to be only short-term negative for supplies but don’t change anything with the deteriorating crude demand outlook. ​

The initial spike following the Keystone Pipeline leak news was short-lived but with prices so close to the $70 level, we might not see much more weakness. ​ The $70 level remains key for oil as that is where the Biden administration is expected to start to consider refilling the strategic petroleum reserve. ​

Gold

Gold prices are flirting at the $1800 level as the dollar softens ahead of a key round of inflation data. ​ It starts on Friday with an expected deceleration with wholesale price gains and later that morning the University of Michigan inflation expectations that are expected to remain steady. ​ On Tuesday, we will get the November Inflation report that should indicate that price pressures continue to ease and on Wednesday we get the Fed. ​ The FOMC is expected to downshift to a half-point pace but traders will care to see what members have to say about the trend of inflation and where rates could peak.

Gold looks like it will find a home around the $1800 level until we have better indications of the path of prices. Key resistance remains the $1830 level with decent support at the $1750 region.

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

Ed Moya

Senior Market Analyst, The Americas at OANDA

With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments 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 corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted 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.

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• Source: https://www.marketpulse.com/20221208/oil-pops-on-keystone-pipeline-leak-gold-edges-higher/