OANDA: Gold stabilizes on higher oil prices
  Source:OANDA 2023-05-16 13:18:39
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Oil prices are bouncing back today, but how long will it last? Earlier this month, oil prices were hit again by concerns in the US banking sector, and I'm not sure if those concerns have faded to the point where oil can fully recover without OPEC+ intervening again.Oil prices could rebound without the aid if credit conditions ease in the coming months, alleviating economic concerns about the world's largest economy, but it seems premature for now. A key test will be around $78 for Brent, which represents the December-March trend low and last week's peak.Could Debt Ceiling Talks Stimulate Gold to a Record?Gold started the week slightly higher but could struggle more broadly. It has failed to generate the needed momentum around the all-time highs it has repeatedly approached in recent weeks, and I'm not sure what's changed in that regard.We may need to see slightly more benign inflation data to spark a strong run into highs around $2,070. Debt ceiling anxiety could be the catalyst, but it feels a bit phony at this point. Nobody wants the US to default, so it won't happen. But the closer it gets, the tighter it gets, and gold looks more attractive at this point.To see all of today's economic events, check out our economic calendar: www.marketpulse.com/economic-events/