Gold has been declining since the end of the European session when better than expected US industrial production data game equities a boost – hurting demand for the yellow metal as a safe haven asset. Keep in mind, a lot of the drop is also due to profit taking. Gold has risen tremendously due to political tension in the Crimea recently, and many traders are seeking to capitalize on the gains they have made since last week. At the moment, the commodity is ranging as there is no further data that could affect its activity and the situation in Eastern Europe has not changed. Be sure to keep apprised of events in that region to accurately gauge where gold will go in the future. Look for support at 1364.39 and resistance at 1391.96.
Oil also declined earlier today and is leveling off in anticipation of further news. Again, this commodity was also hit by profit taking as post-election tension in the Crimea caused oil prices to initially rise. The relative calm has allowed some traders time to cash in and consequently crude has retraced its gains substantially. Though there is still downward pressure, oil may simply range as investors follow the events in the Ukraine closely. Look for support at 97.53 and resistance at 99.30.
March 17, 2014 – Commodities Update
Gold has been declining since the end of the European session when better than expected US industrial production data game equities a boost – hurting demand for the yellow metal as a safe haven asset. Keep in mind, a lot of the drop is also due to profit taking. Gold has risen tremendously due to political tension in the Crimea recently, and many traders are seeking to capitalize on the gains they have made since last week. At the moment, the commodity is ranging as there is no further data that could affect its activity and the situation in Eastern Europe has not changed. Be sure to keep apprised of events in that region to accurately gauge where gold will go in the future. Look for support at 1364.39 and resistance at 1391.96.
Oil also declined earlier today and is leveling off in anticipation of further news. Again, this commodity was also hit by profit taking as post-election tension in the Crimea caused oil prices to initially rise. The relative calm has allowed some traders time to cash in and consequently crude has retraced its gains substantially. Though there is still downward pressure, oil may simply range as investors follow the events in the Ukraine closely. Look for support at 97.53 and resistance at 99.30.
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