Gold Continues to Decline against Firm USD While Crude Hits 3½ Years High

Gold continues to move downtrend for the 3rd consecutive session as USD grows strong with support from Treasury yields. Crude Oil price hits 3½ year high.
Colin First
Gold Thursday

The pair XAUUSD, however, has slowed down on its downtrend approach so far today; it is currently trading around $1287.50 and has been moving in range of $1287-89 for the majority of Asian and European market hours.

USD saw a temporary slowdown in momentum yesterday during American market hours post release of macroeconomic data with mixed results. Many analysts believe that the current momentum of US dollar is an overstretched rally and USD is likely to turn dovish.

Gold Prices Continue Weakness

While multiple rate hike possibilities this year are expected to keep US bulls moving across the year, gold prices are expected to remain under pressure. The yellow metal has been pressured by the expectation of rising rates as bond yields increased during the previous week and as Fed members continue to signal four rate hikes by the end of the year.

Gold Hourly
Gold Hourly

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Silver continues to remain strong across the week. While the yellow metal gave in to a huge downward movement as greenback grew firm, Silver continues to remain solid at $16 mark. Despite Tuesday’s slight decline, silver saw stellar upward growth during later half of Wednesday and it continues to move upward during Asian market hours on Thursday. Silver hits the day’s high at $16.438 and is currently trading around $16.410. Silver is expected to move in a range of $16.30 to $16.50 for rest of the week.

Traders are currently at an impasse when crude oil is concerned. This week’s inventory cycle has been confusing for participants in the energy markets. Both the EIA and API reports have come out with great difference prompting a largely rotational oil trade. Tuesday’s API crude oil stocks report came in at a surplus of 4.854 million barrels, up from the previous release of -1.850 million, while yesterday’s EIA inventories report came in at -1.404 million barrels, above projections of -0.763 million.

However growing global tension is expected to keep Crude Oil price above $70 price range in near future. This along with Dovish EIA result has helped Crude Oil price hit 3½ year high during late American session at $72.89 per barrel. The WTI/USD pair is currently trading near high at $71.97 and has traded around $72 price range for the majority of the day. Expected support and resistance for the pair for the remainder of this week’s trading session are at $73.80 and $70.26 respectively.

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SymbolLast PriceChange
EURUSD
EUR/USD
1.1649
-0.0074
-0.63%
GBPUSD
GBP/USD
1.3297
-0.0084
-0.63%
XAUUSD
Gold
1300.9
-3.0600
-0.23%
CL
Crude Oil
67.505
-3.1650
-4.48%
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S&P 500
2721.0
-8.2500
-0.3%
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DAX 30
12929.0
+6.5000
+0.05%
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