Commodities

XAU/USD runs it second straight profitable week on the back of a recently deflated USDollar, but it may struggle for further gains

The commodity opened the new week on the back foot amidst trade worries and China’s commitment to the zero-Covid policy

The precious metal has started November in a good mood, trying to stop its seven-months losing streak, but awaits today’s Fed decision for the next leg of the move

There is optimism that China will reopen from their strict Covid policy. Given that it is the 2nd largest energy consumer, this will be significant. An unverified note on social media suggested that a "Reopening Committee" had been formed. With the OPEC+ cuts, this may catalyse further price appreciation and a higher peak.

The XAUUSD daily chart shows the precious metal slipping back into its bearish area between the lower blue and red bands. The last candle is still active, and its close will be necessary regarding its relative position.

Oil prices are subdued at the start of this week, unable to get a lift from Monday’s strong Q3 GDP from the world’s second largest consumer

The pace of central bank interest rate hikes and Covid restrictions in Shanghai and Shenzhen are taking massive tolls. These policies will likely cap crude prices, limiting any production cuts' support.

OPEC and allies, including Russia, agreed on Wednesday on deep oil production cuts, sending USOil to three-week highs

XAU/USD makes an upbeat start to the last quarter of the year, helped by USD weakness, breaking above key technical levels

Prices staged a rebound over the last couple of days, on the back of disruption due to hurricane Ian and lower weekly inventories, but face renewed pressure today and USOIL heads towards another losing month

XAU/USD rebounds from Monday’s sump to the lowest level in more than two years, but draws towards the conclusion of its sixth straight losing month