Gold fell earlier today after the Chinese yuan experienced its largest decline in three years. As the world’s second largest economy is responsible for most of the demand for physical gold, any worries in the Middle Kingdom hurt the yellow metal’s prospects. However, since then, gold has been rising steadily as worries regarding the US economy mount. The last Nonfarm Payrolls report was worse than expected along with the most recent initial jobless claims report. Today’s worse than expected CB Consumer Confidence data added to this sentiment, and the precious metal seems to be on its way up right now as a result. The commodity has already broken through the resistance at 1339.60 and is currently testing another resistance point at 1341.10. Should it break this level, we could see more upward movement. Important data to watch for tomorrow will be the US New Home Sales data at 15:00 GMT tomorrow.
Oil has been dropping today due to growth concerns in emerging markets – specifically involving China. Additional downward pressure has come from a recent spat of weak US economic data, which suggests the US economy may not be as strong as previously thought. Lastly, these aforementioned pessimistic forecasts about the demand for crude oil are accompanied by analysts projections that the supply of crude in America will be higher than expected – exacerbating the commodity’s downward momentum. Ultimately, we will not know what US oil supplies will look like until 21:30 GMT tonight. But for now, oil may continue downward barring any new information about the market. Look for support at 101.24 and resistance at 101.36.
February 25, 2014 – Commodities News
Gold fell earlier today after the Chinese yuan experienced its largest decline in three years. As the world’s second largest economy is responsible for most of the demand for physical gold, any worries in the Middle Kingdom hurt the yellow metal’s prospects. However, since then, gold has been rising steadily as worries regarding the US economy mount. The last Nonfarm Payrolls report was worse than expected along with the most recent initial jobless claims report. Today’s worse than expected CB Consumer Confidence data added to this sentiment, and the precious metal seems to be on its way up right now as a result. The commodity has already broken through the resistance at 1339.60 and is currently testing another resistance point at 1341.10. Should it break this level, we could see more upward movement. Important data to watch for tomorrow will be the US New Home Sales data at 15:00 GMT tomorrow.
Oil has been dropping today due to growth concerns in emerging markets – specifically involving China. Additional downward pressure has come from a recent spat of weak US economic data, which suggests the US economy may not be as strong as previously thought. Lastly, these aforementioned pessimistic forecasts about the demand for crude oil are accompanied by analysts projections that the supply of crude in America will be higher than expected – exacerbating the commodity’s downward momentum. Ultimately, we will not know what US oil supplies will look like until 21:30 GMT tonight. But for now, oil may continue downward barring any new information about the market. Look for support at 101.24 and resistance at 101.36.
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