Gold markets continue to show a lot of tight trading in this general vicinity as the $1750 level has offered too much in the way of resistance. On the other hand, there is a lot of support underneath, extending all the way down to the $1690 region, which coincides quite nicely with the 50 day EMA. So, any pullback to this mark may be a nice buying opportunity as the gold markets have been extraordinarily strong.
Gold prices on Thursday moved lower, unable to break out to new highs, after hitting a fresh 7.5-year high.
Oil prices were little up on Wednesday as concerns over the lasting economic fallout from the coronavirus pandemic outweighed signs of improving demand and production cuts by major oil producers. Brent crude futures for July delivery were trading up 12 cents, or 0.35%, at $34.77 per barrel in the early morning.
US West Texas Intermediate (WTI) crude futures for July were up just 2 cents, or 0.06%, at $31.98 per barrel. The July contract became the front-month after WTI futures for June expired on Tuesday, avoiding the chaos of last month's May expiry when prices slid into negative territory.
Gold markets have rallied a bit during the trading session on Tuesday reaching towards the $1700 level. Beyond that, the market even rose to the $1710 level during the US session and continued to bounce around in a large symmetrical triangle. The biggest problem with the symmetrical triangle is it does not tell us which direction the market is most likely to break. However, using trend analysis it is easy to see that we are at a much higher level than we were just Feb 2020.
Oil prices soared overnight as some European and Asian countries along with several US states began to ease coronavirus lockdown measures. The rally extended Brent crude's gains to six straight days while US benchmark West Texas Intermediate has rallied for five consecutive sessions. Fuel demand worldwide was down roughly 30% in April, but demand is rising modestly due to efforts to lift travel and production restrictions.
Physical gold continued to catch a bid last week, reaching trading above $1,730 an ounce, on a host of head-spinning economic news, from millions of more Americans filing jobless claims to record money-printing and negative oil prices.
Gold failed to capitalize on its intraday recovery move, instead met with some fresh supply near a resistance marked by 100-hour EMA and refreshed daily lows during the early NA session.
US stocks finished little changed on Thursday as a strong rally for all three benchmarks hit a snag in afternoon trade amid reports that suggested that a closely followed experimental drug intended to be used to treat coronavirus delivered disappointing results in an “inconclusive” trial.
Meanwhile, the US Congress has passed latest economic relief package of almost $500 billion with more than $300 billion to aid for small businesses. Crude oil prices staged a recovery by more than 2% from historically low levels.
The Dow Jones Industrial Average (DJIA) eked out a gain of 39.44 points or 0.
US crude oil prices dropped by almost 300 per cent to turn negative for the first time as plunging demand pushed storage facilities to their limits. May delivery for the US benchmark crude, West Texas Intermediate, sank to a new low of minus $37.63 a barrel by the close of the oil market on Monday, a staggering level that essentially means producers would be paying buyers to take oil off their hands. Oil set to be delivered in May was hit hardest since that futures contract expires on Tuesday. The June contract also fell, though by a far smaller margin of 18%.
Gold prices consolidated for the second consecutive trading session following a two-day gain of $83 per troy ounce. The dollar moved higher generating a minor headwind for prices. US Treasuries yields moved lower following the negative data released by the US Labor Department. The market has anticipated the week data, but the shocking release of how bad it really is has helped buoy gold prices. Gold volatility reflected by the Gold VIX moved lower initially during the trading session but managed to rebound to the Wednesday closing.
Oil prices rose on Tuesday after a US Energy information administration (EIA) said shale output in the world’s biggest crude producer would fall by the most on record in April, adding to cuts from other major producers. Brent futures rose 56 cents, or 1.8% to $32.30 a barrel on Tuesday morning after settling 0.8% higher on Monday while the US West Texas Intermediate (WTI) crude was up 47 cents, or 2.1% at $22.88, having dropped 1.5% at the previous session. Crude prices have lost some gains this afternoon while Brent crude benchmark was trading by 0.
OPEC and its oil-producing allies on Sunday finalized a historic agreement to cut production by 9.7 million barrels per day, following multiple days of discussions and back-and-forth between the world’s largest energy producers.
Sunday’s emergency meeting — the second in four days — came as oil-producing nations scrambled to reach an agreement in an effort to prop up falling prices as the coronavirus outbreak continues to hammer demand.