Gold finishes higher, oil dips despite EIA drawdown
Retail bias remains extreme buy for precious metals, while oil shorts breathe a sigh of relief on price pullback and tilt towards the middle.
Gold technical analysis, overview, strategies, and levels
Oscillatory moves for Spot Gold prices in line with its current technical overview where most of its technical boxes on the daily and weekly time frame are neutral, even if prices are nearing relative recent highs. A dollar in relative retreat in the forex market and yields finishing lower is generally a positive for the non-yielding metal priced against the greenback, but despite that there wasn't a play on a failure to reach its previous levels.
Expect that to change with tomorrow's fundamental US non-farm payrolls report that usually keeps the dollar volatile, and especially so given the Fed will be noticing it within the context of consistent job gains before any talk of tapering.
As for the remaining precious metals, it was a day of retreat, the gold/silver ratio briefly into the 68s and significantly recovering from Monday's drop when silver outperformed significantly.
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Oil WTI technical analysis, overview, strategies, and levels
The retrace off the highs once again went beyond a key level (its previous first support), but failed to offer much beyond it giving contrarian reversals the clear edge, as a short-term build in positive technical bias brushes up against a mid-term resistance level that held yesterday.
In ETFS Brent Crude data, the Energy Information Administration's drawdown was larger than that of API the night before, distillate stocks dropping by more than estimates, while gasoline stocks rose opposite expectations as refining activity is likely to continue its ascent ahead of the US summer driving season.
In Norway, a wage deal was agreed upon and should reduce the likelihood of a strike there. Economic data out of the US has been improving albeit a general miss, more employment data on offer today and tomorrow, as well as Chinese trade data.
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