Commodities and Bitcoin rallies stall

• Oil inventories drop as Saudis raise prices
• Gold rally stalls ahead of $2050
• Bitcoin anchored at $28,000

Oil

Crude prices are wavering after weakening US economic data was countered by a larger than expected draw with stockpiles as demand across all products roared back.  Energy traders digested a round of US data that suggests the world’s largest economy is headed towards a recession, but then had a rather bullish EIA crude oil inventory report that was immediately followed by a decision from the Saudis to increase oil prices to their Asian customers. 

Over the short-term, it seems will be stuck with higher oil prices as the Saudis have this market wrapped around its finger.  Gasoline demand in the US is impressing and if Americans have big summer vacation plans that could help drive $100 oil calls. 

Gold

Gold’s rally is taking a brief timeout before it makes another attempt at a record high. Demand for safe-havens has never been better since recession risks have not been this high in decades, banking concerns remain, and excessive pessimism for equities. The gold trade is getting a bit overcrowded but the macro backdrop still strongly remains firmly in its favor.  Gold’s immediate resistance comes from the $2050 level, but the all-time high of $2075.57, which was made in August 2020 could prove to be much harder to break beyond.

Bitcoin

Bitcoin is still holding onto the $28,000 level as crypto traders await any fresh developments in the cryptoverse.  The news cycle has been rather slow when you see some of the biggest moves after Elon Musk changes Twitter’s logo to the Dogecoin symbol or as Ether rallies ahead of its key Shanghai upgrade date.

As earnings season approaches, we will hear from the banks in less than two weeks and could hear more concerns about turmoil.  The banking crisis is far from over and that still could prove to be positive for crypto.