FX.co ★ Crude oil and Gold market overview

Oil

The crude oil futures closed on the upside on Wednesday, recovering the earlier lost positions during the session. Oil was positively affected by the US dollar weakening while investors have ignored the government report on crude oil reserves, which has indicated its growth once again.
September contract on the crude oil rose by 55 cents to $71,97 per barrel at the New York Commodity Exchange.
US dollar weakening meant growth of demand for raw goods dollar-denominated, such, as oil. Earlier the contract went down to intraday minimum of $69,71 per barrel on the Globex after Energy Department informed that deliveries of crude oil increased by 1,7 million barrels to 349,5 million barrels last week. The analysts, surveyed by Platts, expected growth by 1,5 million barrels.
Now investors are waiting for non-farm employment report, because energy resources are sensitive to this report. If the number of unemployed approximates to 10 %, than, possibly, we will see the oil prices decline.

Gold

Futures on gold fell from the 2-month high due to tertiary sector employment data release and ISM index of services sector, which have disappointed investors.
The August contract on gold fell by $3,30, or 0,3 %, to $964,20 per ounce at COMEX. The December contract went down by $3,40, or 0,3 %, to $966,30 per ounce.
The US dollar was in demand as asylum-currency, after negative data release. Stronger dollar, as a rule, puts pressure on gold so long as that makes it more expensive for holders of other currencies. It also reduces demand for gold as hedging.
They say, that gold reached powerful resistance level around $970 per ounce. But it is expected that the dollar, which has reached a minimum of 2009, will continue the falling while gold has strong support near the current levels.

Kind regards,

Analyst: Vladimir Donin