Commodities and cryptos: falling oil, slammed gold, stable Bitcoin
Crude prices have collapsed with the gradual return to offshore production in the United States and after a strong dollar, commodity prices have fallen dramatically. Normally, strong US consumption and manufacturing data supports oil prices, but today’s news has changed expectations about how quickly the Fed will decline, triggering a move in the dollar. .
Despite the treatment of tropical depression Nicholas, American production returns regularly. Late yesterday, the Bureau of Safety and Environmental Enforcement (BSEE) reported that 29.52% of current oil production in the Gulf of Mexico was closed, a huge improvement from the 76.48% shutdown on Thursday. latest.
Much attention is also being paid to expanding its House Oversight Committee investigation into how big oil companies are spreading misinformation about climate change. The hearings will involve executives from Exxon, Chevron, BP and Royal Dutch Shell. Regardless of what happens with this probe, there is a growing expectation that energy giants will have more pressure to move away from fossil fuels.
WTI crude was ripe for a pullback, but it likely won’t last any longer as energy traders can’t look past this oil market’s deficit. Oil prices will not have to worry about a strong dollar theme since the Fed will be like an oil giant and will not be able to shift cut expectations to the first side.
Gold and silver were crushed after strong US economic data pushed up Treasury yields. Gold has failed to rally much of a rally over the past two weeks despite growing calls for caution with US stocks. Gold has fallen into the danger zone and could easily dip towards the $ 1,700 level. Gold is going to be technically trading for a while and if prices close below the downtrend line (around $ 1,750) from last summer’s record, it could get very ugly for holders of gold. ingots.
Gold weakness persists despite risk aversion in emerging markets, so the provisional support from the $ 1,745.50 level could be more of a dead-cat rebound. Gold will remain volatile now that it is clearly out of its consolidation pattern.
Bitcoin may want to stop being referred to as digital gold. The rise in Treasury yields boosted the dollar, which sent gold prices into the danger zone, while leaving Bitcoin almost indifferent. Bitcoin’s performance today is impressive considering the general weakness of all commodities. Bitcoin was weighed down earlier after reports that China would step up its crackdown on cryptocurrency mining.
The cryptocurrency world is seeing attention shifting to altcoins. Solana, a potential Ethereum killer, quickly became a favorite asset for many traders. Solana’s 5pm outage made it clear to the cryptoverse that it was not decentralized and was far from unstoppable as their network was unable to handle an increase in transactions. Solana’s woes were good news for Ethereum and likely bolster its leadership in the short term.
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