After a tumultuous session, oil prices dipped as energy dealers were concerned that inflationary pressures will only worsen as the war drags on, destroying petroleum demand. Many Wall Street investors are concerned that stagflation risks could derail the economy later this year, following another high inflation data.
The remote likelihood that OPEC+ may really consider increasing oil output is adding to the pressure on petroleum prices. Regardless, as the global energy crisis worsens, US output is projected to climb, and many oil-importing countries will continue to draw from inventories. In the short run, there is far too much uncertainty about who will buy Russian crude and how much they will pay. WTI crude oil appears to be trading in a wider range between the USD 100 and USD 116 price levels.
Earn passive income by trading Gold with HotForex: flexible leverage, no hidden fees, low spreads, advanced risk-management tools, Forex bonus on the 1st deposit up to $5000, cash rebates up to $8000, and Copy Trading.
Gold prices rose after high-level discussions between Russia and Ukraine failed to result in a cease-fire. As Russia appears set to press through with its invasion on Ukraine, Wall Street is returning to risk aversion mode.
Gold prices appeared to be stabilized around the USD 2000 level, but they could rise if Wall Street grows more convinced that a cease-fire between Russia and Ukraine is unlikely. The USD 1975 level is a strong support level for gold, while the USD 2050 level is a potential resistance level.
The new inflation number did not help gold much today, but it does serve as a warning that stagflation dangers exist, and that growth concerns will eventually lead to safe-haven flows into bullion.
Subscribe for our newsletter
Get Forex brokers reviews, market insights, expert analytics and education material right into your inbox for free!