Oil edges higher, gold remains supported at $1960

NEW YORK (May 23) Oil prices have nudged higher today following another warning from Saudi Energy Minister Prince Abdulaziz bin Salman that short-sellers will be “ouching” as they did in April. “Watch out” was the message ahead of the next OPEC+ meeting early next month in what may be a sign that the group is considering cutting output once more amid a more bleak global economic outlook.

Of course, actions speak louder than words and traders haven’t been overly deterred by his words, despite the group having announced two sizeable cuts in the last year that briefly shook the markets. Crude remains below the levels of December to early March and then April, but recent momentum has been more bullish. A break of $77.50 in Brent could signal a sentiment shift in oil markets after repeated wobbles following the bank failures in the US.

Gold still seeing support around key support

Gold is relatively flat on the day but recent momentum has clearly been more bearish, with $1,960 representing a big test to the downside. We’ve seen it run into support around here this past week and it has been a notable level previously as well including late March and early April, as well as early February.

A break below here could be a very bearish development, with $1,940 and $1,900 then being the standout potential support zones below.

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