Oil Pushes Toward $90; Gold Seen Holding $1,800

1.19.22 - The Fed is Behind the Curve (As Usual)

Gold last traded at $1,840 an ounce. Silver at $24.18 an ounce.

NEWS SUMMARY: Precious metal prices rushed higher Wednesday on rising inflation and a falling dollar. U.S. stocks fell despite several strong earnings reports, as investors remained cautious on equities amid elevated rates.

Investing.com

"Oil bulls are getting all the support they need in their quest for $90-and-above a barrel as the week opens with a deadly air raid on the United Arab Emirates (UAE), a major producer, and a positive supply-demand forecast due from crude exporters group OPEC.

The Iran-allied Houthi movement launched drone and missile strikes on Sunday which set off explosions in fuel trucks in the UAE that killed three people, and warned that it will target more facilities, prompting Abu Dhabi to say that it reserved the right to 'respond to these terrorist attacks.'

The Organization of the Petroleum Exporting Countries (OPEC) is, meanwhile, slated to release its monthly oil market report later on Tuesday. Those long the market will be hoping to use that report as leverage for getting crude to its first target of $90 a barrel and eventually beyond $100.

At $84.50 a barrel for US crude’s West Texas Intermediate and $87.50 for London-traded Brent, oil prices are already up 12% this year, extending 2021’s rally of more than 50%.

The gains came amid evidence that months of fears about the Omicron variant of COVID may have been exaggerated, as the variant has hardly caused as many deaths or illnesses as other strains, including Delta....

On the gold front, longs are expected to keep the yellow metal above the key $1,800-an-ounce support, following through with last week’s 1% gain that left the front-month contract in New York’s COMEX gold at above $1,816."