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Is it possible for gold to continue to rise?
A state of uncertainty dominates the markets, with attention towards the US Federal Reserve meeting
Gold exceeds $2,000 an ounce.
Oil incurs more losses at the beginning of the week's trading.
Cautious calm dominates the markets, as investors await crucial data.
Gold prices
After the strong rises witnessed by the yellow metal last week, gold opened the first sessions of the week with a noticeable increase, surpassing the $2,000 level for the first time since March 2022, before falling again to trade near the $1,975 levels. Despite the decline in gold prices, the optimistic outlook regarding its continued rise in the coming period is still dominant, especially with the persistence of concerns related to the global banking crisis and the increase in demand for safe havens.
Oil prices
Crude oil experienced losses last week, the worst since the beginning of the year, losing nearly 13% in one week. During the first sessions of this week, crude oil prices witnessed some rise, to be traded near $66.69 a barrel, an estimated increase of 0.96%. Despite the positive data for the manufacturing sector in China, which is the second-largest consumer in the world, the markets are witnessing a state of uncertainty, with the dominance of fears related to the decline in global demand due to the banking sector crises, which may portend a global financial crisis, putting more pressure on crude oil. It is worth noting that WTI moved in a tight range since the beginning of 2023; crude has broken lower as the banking crisis and concerns over a global slowdown. These recent events have raised the possibility that OPEC+ might intervene, though some observers reckon that the group will stay on the sidelines for now.
Cautious calm dominates the markets, awaiting much data
Cautious calm dominates the markets, as investors await crucial data to be released this week. Perhaps the most prominent data that the markets are waiting for is the second meeting of the US Federal Reserve this year and the monetary policy report with Jerome Powell's speech after the meeting. Investors will wait to discuss the fate of monetary policy during the coming period, and whether the bank will focus on inflation and ignore the crises that afflict the banking sector or turn to the cash bed policy.
