Oil hits 3-month high, gold and bitcoin lower

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Oil

Crude prices are temporarily exploding as the oil market is still expected to remain tight despite all the emerging global weakness. Crude Oil’s rally is impressive because it’s happening when Europe looks very weak right now, the US is slowing down and China’s Politburo is not expected to unveil any major stimulus this week.

Oil is also getting a boost from Wall Street as optimism grows the end of the Fed’s rate hike campaign appears to be here. With Europe a few months behind, we could start to see all major economies considering easing as the next step. Market positioning likely makes trading Oil much more attractive than US equities, so if the bullish momentum takes WTI Crude to $80, it could have decent momentum behind that move.

Gold

Gold softens as the Dollar catches a small bid following a slight outperformance of the US PMI versus what we have seen in Europe. Gold won’t have a major move until we get a major earnings update that moves sentiment or until we get to the FOMC decision. Gold appears to be on the verge of consolidating between the $1950 and $1970 area.

Crypto

Consolidation in Bitcoin trading has seen price action move closer to lower bounds as volatility subsides. Short-term support from the $29,500 level broke early this morning and if bearish momentum builds, key support could target the $27,500 region. The crypto news flow has not been inspiring, with many traders focusing on the OPENAI Sam Altmans Worldcoin crypto project. It will take a new catalyst to excite Bitcoin traders and at the moment it looks like the price action is destined for a broad formation, potentially targeting the $27,500 and $31,500 area.

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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 global 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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