Oil prices remain strong as fundamentals on both the supply and demand sides remain very optimistic. The energy market is no longer worried about oversupply as US production is likely to remain stable and OPEC + is on track to gradually increase production. The headlines about the forecast for crude oil demand are mixed, but nothing too negative to reverse the overall upward trend. The fight against COVID in Singapore only lasts a few weeks and should be handled by health experts with special caution. The situation in India remains bleak and pressure on Prime Minister Modi continues to grow to capitulate and declare a lockdown.
WTI oil is higher, but it will be difficult for it to break the highs of early March until India, the world’s third largest oil importer, begins to reduce COVID cases. The upward path for oil is clearly higher, it just needs to be seen that what is happening in India is not happening anywhere else.
Gold prices are not falling, despite the strengthening of the dollar, caused by the cautious attitude of investors towards equities. Gold still looks poised to break above the $ 1,800 level as the Fed changed its ultra-adaptive stance on cruise control monetary policy over the next few months. Now that a ceiling on Treasury yields has been set, gold could be hitting a wave of bullish momentum very soon.
Bitcoin’s low performance compared to other altcoins is good news for gold. From December to December, gold loses some of its institutional traffic towards Bitcoin, but many of these traders will refrain from increasing their cryptocurrency and will simply transfer Bitcoin assets to other coins.
Gold is slowly turning bullish; it just needs to break above some key technical levels before Wall Street becomes a believer again.
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