Crude Rallies, Gold Extends Losses, Bitcoin Rebounds
MarketPulse | Jan 28, 2022 03:39PM ET
Crude prices have been on fire, rising for a sixth straight week as the demand outlook improves and over geopolitical fears could lead to severe production disruptions. The supply side continues to support a tight market as OPEC+ is expected to stick to their plan of increasing output by 400,000 bpd in March, even though their compliance last month only hit 60% of plan.
Now that $90 oil is here, it won’t take much to get prices to $100 and that will just intensify the global energy crisis. News of an Omicron subvariant have not rattled markets as boosters appear to still be getting the job done.
WTI crude settled near session lows after the weekly Baker Hughes rig count data rose by 4 rigs to a total of 495.
h2 Gold/h2Gold’s pain may last a little longer until the Fed’s aggressive pivot with tackling inflation is fully priced in. The $1,800 level was a key support level for gold, so momentum selling has the potential to make this an interesting trade. If it gets ugly quick and $1760 breaks, gold may not see much support until $1720.
h2 Bitcoin/h2Bitcoin is embracing Wall Street’s risk-on mood as it continues to form a base. The all-clear signal has not been given, but crypto traders are embracing the relative calm that is being seen with the top cryptos. Bitcoin may form a broadening formation between $34,000 and $40,000 next week.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.