Gold is ranging now during the Asian session after climbing late Tuesday. The primary reason for this increase has been the situation in the Ukraine. As equities fell from tension between Russia and the West over Crimean elections, the price of gold rose as investors look ed for a safe place to park their wealth. As Eastern Europe sleeps, much of the activity has died down. Furthermore, without any data from China (the world’s largest consumer of physical gold), the yellow metal may continue to range for much of the Asian session. However, if the crisis in the Ukraine escalates, gold could continue its rise on safe haven demand. Look for support at 1348.67 and resistance at 1350.74.
Oil has been declining for most of Tuesday as reports of increased supplies in the US put downward pressure on prices. Crude stockpiles stood grew by 2.6 million barrels as opposed to expectations of only 2.3 million barrels, while distillates declined by only 0.839 million barrels despite exceptions of a 0.9 million barrel decline. Furthermore, crude has been falling since Monday when were than expected Chinese export data scared traders away from many of the raw materials used in the Chinese manufacturing sector. Due to the aforementioned factors and the lack of further data affecting oil for now, we could see the commodity continue its drop as investors look for more promising assets. Look for support at 99.44 and look for resistance at 99.68.
March 11, 2014 – Commodities Update
Gold is ranging now during the Asian session after climbing late Tuesday. The primary reason for this increase has been the situation in the Ukraine. As equities fell from tension between Russia and the West over Crimean elections, the price of gold rose as investors look ed for a safe place to park their wealth. As Eastern Europe sleeps, much of the activity has died down. Furthermore, without any data from China (the world’s largest consumer of physical gold), the yellow metal may continue to range for much of the Asian session. However, if the crisis in the Ukraine escalates, gold could continue its rise on safe haven demand. Look for support at 1348.67 and resistance at 1350.74.
Oil has been declining for most of Tuesday as reports of increased supplies in the US put downward pressure on prices. Crude stockpiles stood grew by 2.6 million barrels as opposed to expectations of only 2.3 million barrels, while distillates declined by only 0.839 million barrels despite exceptions of a 0.9 million barrel decline. Furthermore, crude has been falling since Monday when were than expected Chinese export data scared traders away from many of the raw materials used in the Chinese manufacturing sector. Due to the aforementioned factors and the lack of further data affecting oil for now, we could see the commodity continue its drop as investors look for more promising assets. Look for support at 99.44 and look for resistance at 99.68.
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