Oil Extends Gains, Gold Eyes U.S. CPI
MarketPulse | Sep 14, 2021 07:44AM ET
Oil prices are rising once more, with WTI still sitting comfortably above $70 after recording two days of gains. The OPEC monthly report on Monday gave an encouraging assessment of crude demand this year and next, with the only glitch coming in the fourth quarter as a result of the Delta variant. But with demand seen exceeding pre-pandemic levels in 2022, things are looking up which should keep OPEC+ taper plans on schedule while continuing to chip away at inventories.
The US Gulf Coast is on high alert once more, as Hurricane Nicholas makes its way towards Texas. Coming so soon after Hurricane Ida caused havoc in the region, it seems oil traders are preparing for the worst. And with a couple more months of hurricane season still to go, prices may remain well supported.
h2 Gold eyes US inflation data/h2Gold is back in consolidation as nerves grow ahead of next week’s Fed meeting. The yellow metal will remain sensitive to US economic releases this week, especially today’s inflation reading, with any delay to tapering being a positive catalyst in the coming weeks.
Gold did break back above $1,800 late last month but the rally ran out of steam quickly, as policymakers rushed to reaffirm their belief that tapering should begin this year. Some are still of the view that it should start asap so it seems many are unmoved by the weakness we’re seeing in the US data, most notably the shocking August jobs report.
Whether they’ll remain so entrenched if the data continues to display weakness, or if inflation pressures recede, is another thing. Fear that inflation may not be as transitory as is currently believed seems to be driving the rush to taper, even as the economic recovery loses momentum and Delta spreads rapidly.
Original Post
/h2
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.