Oil soars after Biden’s trip, gold steady

Important Update for RobotFX Visitors

We want to sincerely apologize for any confusion or inconvenience caused by our recent website restructuring.

The main RobotFX hub has officially moved to our new, streamlined address at robotfx.org (without the "www" prefix). While our main operations have shifted, we want to reassure you that this archives site, old.robotfx.org, will remain fully active. You can still access our complete library of past posts, historical trading analysis, and legacy articles right here.

However, for the latest updates, newer content, and a significantly faster, more optimized browsing experience, we highly recommend heading over to our primary home at https://robotfx.org.

Thank you so much for your continued support and patience as we improve our digital services.

Oil jumps after Biden’s failed Saudi trip

Oil prices are soaring again today, buoyed by an apparent easing in economic fears, stronger risk appetite and a failure by the White House to get any concrete commitment to increase oil output during the Middle East visit.

When the biggest talking point from President Biden’s meeting with Saudi Crown Prince Mohammed bin Salman is a fist bump photo, you know it probably hasn’t gone to plan. It’s another blow ahead of the midterms for Biden in what was ultimately a desperate attempt to at least look like he’s doing everything in his power to restore prices to more tolerable levels.

A recession appears to be the only hope for sustainable sub-USD 100 prices now which is a little depressing. Perhaps OPEC+ will surprise us next month but we shouldn’t get our hopes up.

Buoyed by a weaker greenback

Gold is enjoying a decent start to the week as the improved risk environment takes some of the heat out of the dollar rally. The yellow metal had tested USD 1,700 late last week but is enjoying a bit of a breather so far today. I’m not convinced that will be sustained but the Fed being silent this week probably gives it the best hope in the short term.

Trading analysis offered by RobotFX and Flex EA.
Source