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Colin First
Gold Friday
Gold Friday

XAU/USD made another attempt to penetrate the resistance in the 1307.50-1306 area but was unable to break through. Consequently, the market pulled back to the support in 1297/6. Prices have been trapped in a relatively narrow range of 1301 to 1310 for majority of North American session on Thursday and Asian market hours on Friday. Two major reasons for the decline in gold price against US greenback are upbeat U.S. economic data and Italy reaching a deal on new government ending a crisis that rattled global markets. However gold continues to remain above $1300 as US Greenback is weighed down by US President Trump’s decision to levy tariff on import of Steel and Aluminum from Canada, Europe and Mexico. As of writing, the safe haven zero-yielding yellow metal is moving just above $1300 price handle at $1303.30. Investors are currently on lookout for NFP data, Unemployment rate and ISM Manufacturing PMI data from US market. If the yellow metal manages to trade above $1305 at time of Macro data release the yellow metal will manage to close for the week above $1300 on the flip side if the pair continues to trade below $1305 an upbeat US macro data could push the pair as low as $1295/90 as trading session closes for the week.

Gold Hourly

Silver price has remained relatively unchanged across the week. The XAGUSD pair has traded well inside $16 price handle with slight ups and downs, when looked at in hourly chart forms a sinusoidal wave pattern. The pair is currently trapped inside $16.61 to $16.31 and unless the pair manages to consolidate outside of this price range there will be no major change for rest of today’s trading session. Global oil markets have been roiled by a surprising divergence between the world’s major benchmarks, Brent crude and its U.S. counterpart, which in recent days have traded at odds with one another.

The market expected OPEC, led by Saudi Arabia, to add to global supplies as sanctions reduce Iranian exports in coming months. But instead of bringing Brent closer in line with U.S. crude, the opposite has happened, roiling both futures trading and key physical grades. On Thursday, U.S. crude futures traded as much as $11 below Brent , the deepest discount since early 2015. WTI, for its part, is trading at a multi-year low relative to Brent. Currently WTIUSD continues to trade at $67 per barrel dropping to an $11-per-barrel discount relative to Brent. The blowout in the spread is the result of surging shale production at a time when supply is restricted elsewhere in the world. This discount is inspired by infrastructure bottlenecks, geopolitical fears, supply increases and outages cropping up in various parts of the world. The WTIUSD pair is expected to close in discount to Brent this week as Asian buyers have swapped import of Middle Eastern Oil with US shale import increasing stock pile when discount in price continues to exist.

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