Oil rises as OPEC+ likely to try to keep oil market tight; Gold lower on strong USD

<p><a href="https://api.addthis.com/oexchange/0.8/forward/facebook/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Fnewsfeed%2Foil-rises-as-opec-likely-to-try-to-keep-oil-market-tight-gold-lower-on-strong-usd%2Femoya&amp;pubid=ra-525512e4690e068c&amp;title=Marketpulse%20%7C%20Home&amp;ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/facebook.png" border="0" alt="Facebook" /></a><a href="https://api.addthis.com/oexchange/0.8/forward/twitter/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Fnewsfeed%2Foil-rises-as-opec-likely-to-try-to-keep-oil-market-tight-gold-lower-on-strong-usd%2Femoya&amp;pubid=ra-525512e4690e068c&amp;title=Marketpulse%20%7C%20Home&amp;ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/twitter.png" border="0" alt="Twitter" /></a><a href="https://api.addthis.com/oexchange/0.8/forward/email/offer?url=https%3A%2F%2Fwww.marketpulse.com%2Fnewsfeed%2Foil-rises-as-opec-likely-to-try-to-keep-oil-market-tight-gold-lower-on-strong-usd%2Femoya&amp;pubid=ra-525512e4690e068c&amp;title=Marketpulse%20%7C%20Home&amp;ct=1" target="_blank"><img src="https://cache.addthiscdn.com/icons/v3/thumbs/32×32/email.png" border="0" alt="Email" /></a></p><p>Commodities are starting to post some diverging trends as US soft landing hopes improve.  Oil has benefited from a resilient US economy, but gold has struggled as a tight labor market suggests the Fed may need to keep interest rates higher for longer.  A recent Bloomberg survey noted that firmer growth prospects are expected through Q3, potentially rising 0.5%.  The outlook for Q4 is GDP to contract 0.4%.</p>
<p>Oil</p>
<p>Oil prices are rising on optimism that the outlooks for China and India should keep the global crude demand outlook intact, while OPEC+ will make sure the market remains tight. ​ UAE Energy Minister al-Mazrouei noted actions by OPEC+ to support the oil market were sufficient for now and the group is “only a phone call away” if any further steps are needed. He told Reuters that “But we are constantly meeting and if there is a requirement to do anything else then during those meetings, we will pick it up. We are always a phone call away from each other.”</p>
<p>WTI crude has been rising since the end of June but has clearly found resistance just above the $77 level. ​ Next week, energy traders will have to pay attention to global flash PMI readings, a handful of major energy companies earnings, the standard weekly stockpile data points and some energy conferences which could provide some insight for the future shifts with supply and demand.</p>
<p>WTI crude might continue its consolidation pattern between the $74 to $77 level.</p>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/07/CL1_2023-07-21_12-22-52.png"><img loading="lazy" class="alignnone size-large wp-image-806538" src="https://www.marketpulse.com/wp-content/uploads/2023/07/CL1_2023-07-21_12-22-52-1024×573.png" alt="" width="700" height="392" srcset="https://www.marketpulse.com/wp-content/uploads/2023/07/CL1_2023-07-21_12-22-52-1024×573.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/07/CL1_2023-07-21_12-22-52-300×168.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/07/CL1_2023-07-21_12-22-52-768×430.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/07/CL1_2023-07-21_12-22-52-1536×860.png 1536w, https://www.marketpulse.com/wp-content/uploads/2023/07/CL1_2023-07-21_12-22-52.png 1634w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Gold</p>
<p>Gold prices are softening as the dollar firms up after reports that the BOJ is leaning towards leaving yield curve control strategy unchanged. ​ The dollar is riding a small wave here and that is putting gold’s third weekly gain at risk. ​ Gold traders have a lot of news to follow next week and that could support a deeper pullback if the Fed keeps optionality for more tightening on the table and if earnings continue to mostly suggest the resilience of the US economy remains.</p>
<p>Before the central bank fireworks ignite next week, gold seems like it will consolidate between the $1940 and $1980 range. ​ ​ ​</p>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/07/GC1_2023-07-21_12-27-45.png"><img loading="lazy" class="alignnone size-large wp-image-806539" src="https://www.marketpulse.com/wp-content/uploads/2023/07/GC1_2023-07-21_12-27-45-1024×573.png" alt="" width="700" height="392" srcset="https://www.marketpulse.com/wp-content/uploads/2023/07/GC1_2023-07-21_12-27-45-1024×573.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/07/GC1_2023-07-21_12-27-45-300×168.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/07/GC1_2023-07-21_12-27-45-768×430.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/07/GC1_2023-07-21_12-27-45-1536×860.png 1536w, https://www.marketpulse.com/wp-content/uploads/2023/07/GC1_2023-07-21_12-27-45.png 1634w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>