Gold touched its 7 week low twice yesterday but bounced back. We can finally see an increase in physical demand after the price dropped below $1,300/ounce. The situation in Ukraine seems to have calm down even though there is still some risk of escalating. If escalation does occur we could see the price climb back above $1,300/ounce. Earlier today, we saw a weaker than expected U.S ADP Non-Farm Employment repost, which had a bullish effect on Gold. The price peaked at a high of $1,294.45. Investors should watch developments in the Chinese economy as positive data could trigger an additional increase in physical demand. At the moment, the movement is slightly upwards with support at $1,290 and resistance at $1,298
Oil
Oil continued its bearish movement for a third day and broke the $100 level. Currently the price is ranging at $99.1/barrel with support at $101 and resistance at $102.2 . The current downwards movement is fueled by growing concerns that China’s economic growth is slowing down. According to analysts this is a result of the Chinese government trying to balance controlling pollution and credit bubbles whilst also maintaining steady economic growth. Another factor supporting the bearish trend is the increased gasoline demand, with a 3.9% increase in comparison to last year.On the other hand, the weekly crude stocks at Cushing, Oklahoma was off by 1.22 mln bbls.
Gold
Gold touched its 7 week low twice yesterday but bounced back. We can finally see an increase in physical demand after the price dropped below $1,300/ounce. The situation in Ukraine seems to have calm down even though there is still some risk of escalating. If escalation does occur we could see the price climb back above $1,300/ounce. Earlier today, we saw a weaker than expected U.S ADP Non-Farm Employment repost, which had a bullish effect on Gold. The price peaked at a high of $1,294.45. Investors should watch developments in the Chinese economy as positive data could trigger an additional increase in physical demand. At the moment, the movement is slightly upwards with support at $1,290 and resistance at $1,298
Oil
Oil continued its bearish movement for a third day and broke the $100 level. Currently the price is ranging at $99.1/barrel with support at $101 and resistance at $102.2 . The current downwards movement is fueled by growing concerns that China’s economic growth is slowing down. According to analysts this is a result of the Chinese government trying to balance controlling pollution and credit bubbles whilst also maintaining steady economic growth. Another factor supporting the bearish trend is the increased gasoline demand, with a 3.9% increase in comparison to last year.On the other hand, the weekly crude stocks at Cushing, Oklahoma was off by 1.22 mln bbls.
Trend: Down
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