UKOIL slips over demand concerns
The Oil prices remain under pressure on fears of weakening global demand. Geopolitical tension and supportive fundamentals have led brent speculators to bai out. In addition, OPEC oil output fell in April, capping off a seven-week low for the black gold. While economic hopes are fading, the current outlook remains positive as OPEC+ is not considering rolling out its production cuts at its next meeting in June. Prices are now testing 83.00, with 85.50 being a solid resistance.
XAUUSD drops lower
Bullion had a decent push from the Fed last week, as prices jumped over $30 with their latest decision to hold rates as they are. However, the move faded quickly before the yellow metal erased almost all its gains. Gold posted back-to-back weekly drops for the first time since February. Should the Fed finally set the path alight again in the months ahead, that could be a structural tailwind for another attempt at a record high. The price hovers around 2300, with 2250 being the closest support.
NAS100 resumes bearish stance
The initial reaction to the Fed’s decision and comments was positive for the Nasdaq, with the index climbing a few points. Sentiment swung quickly, with a close into the negative and a bearish continuation. This gives the economy signs that the index will probably continue to trade in a tight range for a while. Bulls want to buy, but many negative indications lie around, such as sticky inflation and ongoing geopolitical risks. The recent swing high of 17800 is the next hurdle, and 16800 is critical support.