Oil increases losses on COVID fears, gold fight for survival

The oil takes a drop

Oil prices have fallen on the heels of speculation that they could be reduced after the WHO told governments to take steps to prevent the shipment of COVID- 19 when the new wave hits Europe and the US. Crude can’t rest on his laurels because all the headlines are turning bearish. The previous oil crisis from Heathrow Airport ended the trip, growing European fears following a collapse in German investor confidence, and growing fears that Shanghai sees a second lock.

Technical sales for WTI crude have been strong since the break of the USD 100 level and this will end the potential stability in the short term. Without depleting supplies, oil is seen selling at sub-USD 100 for some time until demand improves. Now that China is seen to be back in shape, Europe is fast on its way to prolonging demand as the recession begins, and the US economy is slowing down. ,

Oil did not look at an OPEC report showing rapid demand for supplies. Finally, as long as the short -term demand outlook is stable, energy investors will need to keep an eye on oil’s stable outlook in 2023.

Oil will find its way above the USD 100 level, but now it seems to have found a home in the mid -USD 90s. ,


Gold prices are holding a loving life while the financial sector is still in a major market. A 20-year low for the euro against the greenback is big news in FX because investors aren’t aware of the increase in interest rates. The ECB will have a short -term shortfall, while the Fed will be seen in about half of theirs. The currency can take a long time, but there is some fatigue after the EUR / USD parity is reached. The euro could rise further to 1.0150 before seeing further lows. This is similar to a normal FX move where everyone trades on the move and then when the high level is tested they close the positions. The Euro could fall as much as 200 pips against the currency if fears of a return to Europe rise.

Gold can be seen in some hedge funds but it will not work until a fixed currency is established. Gold is trying to hold on to the USD 1700 level and will be tested with the hottest bullish signal tomorrow. ,

This article is for general information only. It is not investment advice or an option to buy and sell securities. Opinions are the authors; OANDA Corporation or any of its affiliates, affiliates, directors or officers shall not be liable. Leveraged trading is high quality and not suitable for everyone. You could even lose your savings.

With more than 20 years of professional marketing, Ed Moya is a senior market analyst with OANDA, doing up-to-the-minute intermarket analysis, covering geopolitical events, central banking policies and the market’s response to business news. He has specialized knowledge across asset classes such as FX, commodities, fixed income, commodities and cryptocurrencies. During his career, Ed has worked with some of the leading forex brokerages, research firms and news agencies on Wall Street including Global Forex Trading, FX Solutions and Advantage Trading. Most recently, he worked with TradeTheNews.com, where he provided market insights on economic data and business news. Based in New York, Ed is a regular guest on big money television businesses including CNBC, Bloomberg TV, Yahoo! Real Estate, Fox Business and Sky TV. His ideas have been credited with the world’s leading news outlets such as Reuters, Bloomberg and the Associated Press, and he has been featured in leading magazines such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.

Ed Moya

Ed Moya

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