Oil rally continues ahead of OPEC+ meeting
Oil prices are continuing to edge higher as China further eases lockdown restrictions in Shanghai. The lockdowns in China have countered some of the supply shortages in recent months and stopped oil prices from rising too far but with restrictions lifting and the EU closing in on a Russian import ban, we could see Brent back at the early March highs. This doesn’t bode well for the global economy or inflation and if anyone is hoping OPEC+ step in this week, they’re setting themselves up for disappointment.
Gold edges higher
Gold is a little higher again at the start of the week, buoyed by some softness in the dollar which has continued to give back some of the huge gains of recent months. Whether the yellow metal can sustain this ultimately depends on whether yields will continue to edge lower. That seems unlikely over the medium term but they have recently eased off. Gold faces initial resistance around USD 1,870, with USD 1,900 a big test above that.
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