Wed. Dec 8th, 2021

Oil shines with Pfizer approval

Crude oil prices skyrocketed again after the Pfizer COVID vaccine gained full FDA approval, opening the door to more vaccine mandates that will help achieve U.S. immunity. The prospects for crude oil demand will gain momentum here, now that the delta variant appears to be at its peak in the south and as China reduces local COVID cases to zero.

WTI crude prices should be supported in the future, as sales were exaggerated and stocks were reduced. Oil prices could quickly return to US $ 70 if the Fed does not send the higher dollar formally committing to reducing its asset purchases.

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Gold is starting to look very attractive again, as Treasury yields continue to be based on expectations that the Jackson Hole Symposium will show an expected approach before committing to reducing asset purchases. Cases are on the rise in Wyoming and this has led to a red code restricting meetings. Jackson Hole will be virtual again and this makes it unlikely that the Fed will want to indicate that they are ready to slow the pace of asset buying.

The Fed minutes noted that there will be a reduced announcement this year, but the risks of delta variants are likely to make Jackson Hole a somewhat dubious event. The Fed may make a reduced announcement in September or November, but it will likely be a slow down with no commitment on interest rate hikes.

The $ 1850 level is all for gold and if after the Jackson Hole Symposium, prices can’t make a new high in August, bullion investors could be on the sidelines. Gold should begin to form a trading range around the US $ 1800 level ahead of Friday’s Fed Powell chair speech.

This article is for informational purposes only. It is not an investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its subsidiaries, subsidiaries, directors or administrators. Leverage trading is high risk and not suitable for everyone. You could lose all your funds.

Ed Moya

With more than 20 years of business experience, Ed Moya is a senior market analyst with OANDA, which produces up-to-date inter-market analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His specialization is found in a wide range of asset classes, including currencies, commodities, fixed income, stocks and cryptocurrencies. Throughout his career, Ed has worked with some of Wall Street’s leading forex brokers, research teams, and news departments, including global forex trading, currency exchange solutions, and Trading Advantage. Most recently, he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks, including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most recognized news networks, including Reuters, Bloomberg and the Associated Press, and he is regularly cited in prominent publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed has a degree in Economics from Rutgers University.

Ed Moya

Ed Moya



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