Oil Down on Strong Dollar, Volatile Gold, Bitcoin at $29,000

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Oil’s worst fall in a month as demand worries rise Rising yields weigh on gold Binance had a sell order for 16,000 bitcoin ahead of the 4am plunge

Oil

Oil prices fell as the dollar rebounded and after a mixed oil inventory report raised demand concerns. Gasoline demand showed unexpected weakness as inventories recorded a surprise increase of 1.3 million bpd versus an expected decline of 1.5 million bpd. The overall draw of 4.5 million barrels was bigger than expected, but that was because it was the end of the maintenance season.

WTI Crude is back below the $80 level and it could continue to decline if strong dollar trading resumes.

Gold

Gold prices are back in place. After a tentative dip below the $2,000 level, buyers are emerging as investors are still unsure of what to expect with the next wave of earnings and the debate over the Fed’s path continues. For risk appetite to stay in place, Wall Street needs to see strong tech earnings in mega-caps and be confident the Fed won’t tighten rates beyond the May 3 meeting.

Political, earnings and credit risks should help send gold flows into safe havens, but if the king dollar trade reverses expectations that the Fed might need to make a few more rate hikes, it could get ugly. If gold does not regain the $2025 level soon, sellers could easily take over here.

Bitcoin

Bitcoin plunged earlier in Europe as some crypto investors decided to dump large positions before NY got to their trading desks. Bitcoin’s 3% drop happened shortly after 4 a.m., meaning they wanted to do it before the next earnings cycle and after a UK inflation report.

There are clear signs of exhaustion with the growth of the global crypto market capitalization and if we are looking at a period of consolidation, it seemed like a good time to exit.

Bitcoin is holding at the $29,000 level, but if the downward pressure continues, support will not emerge until the $28,550 region.

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With over 20 years of trading experience, Ed Moya is a senior market analyst at OANDA, producing up-to-the-minute cross-market analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. . His particular expertise covers a wide range of asset classes, including currencies, commodities, fixed income, equities and cryptocurrencies. During his career, Ed has worked with some of the major forex brokerages, 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 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 opinions are endorsed by the world’s most renowned news agencies 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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