$CL This line is a bit interesting. Trump said not to move against Iran before the midterm elections, and oil prices immediately got slammed lower; at 90.18, it fell 1.4% over 24h. The geopolitical premium that had built up in the market earlier is clearly being squeezed out, and in the short term, easing supply concerns matters more than anything else.
But don’t rush to chase the downside. The area around 90 has been repeatedly tested before, and whether it can be broken through decisively still depends on whether volume follows in the next trading session. If it’s just a quick sentiment-driven selloff followed by a fast rebound, then it’s a fake breakdown.
Looking the other way at $XAU , it is still up 1.68% at 4200.35. Safe-haven funds haven’t left; they’ve just shifted position from crude oil. This divergence says a lot — the market isn’t trading peace, it’s trading uncertainty as it spreads in a different direction.
My view: $CL crude is weak in the short term, and a break below 90 is the acceleration signal; $XAU this line is temporarily stronger than oil, so don’t short gold lightly.
This kind of drop in oil is more worth watching for its pace than for its size.
#gold
But don’t rush to chase the downside. The area around 90 has been repeatedly tested before, and whether it can be broken through decisively still depends on whether volume follows in the next trading session. If it’s just a quick sentiment-driven selloff followed by a fast rebound, then it’s a fake breakdown.
Looking the other way at $XAU , it is still up 1.68% at 4200.35. Safe-haven funds haven’t left; they’ve just shifted position from crude oil. This divergence says a lot — the market isn’t trading peace, it’s trading uncertainty as it spreads in a different direction.
My view: $CL crude is weak in the short term, and a break below 90 is the acceleration signal; $XAU this line is temporarily stronger than oil, so don’t short gold lightly.
This kind of drop in oil is more worth watching for its pace than for its size.
#gold