Crude oil and Spot gold trending points
- On Wednesday, the 13thof March 2019, both UK and US crude rose to a multi-month high, despite a US inventory surge beating forecast
- Investors had been seeking refuge at safe-haven gold amid Brexit uncertainty, as spot-gold price breached two-week high at $1308.05 an ounce
Crude oil keeps gaining, Spot gold to test key resistance at $1313 an ounce
On Wednesday, both US and UK crude outperformed and breeched their multi-month high, largely buoyed by the ongoing efforts of OPEC production cut alongside a power blackout deducing the Venezuelan output. While supply outlook appears to be brighter for buffering a higher crude oil price, a US-China trade deal soon would likely to improve market demand.
While this report was being prepared, March 13th, GMT. 16.45, the US crude was trading at $58.08 per barrel and the UK crude was at $67.01 a barrel. From a technical point of view, in a short or medium-term outlook, crude oil would less likely to gain further upwind momentum and an ongoing bullish bias would likely to be slowing down, as US inventory data released today showed an increase, beating analysts’ forecast.
From a technical point of view, at this moment, the Brent crude may test $69 level in a near-term outlook, its 200-day moving average, although the ongoing pace would unlikely to sustain, while the US crude may test $59-$59.50 level. On the flipside, initial resistance level for US crudes had been residing at $54.50 and for Brent crude at $65 per barrel.
UK crude daily price chart
US crude daily price chart
Besides, the spot gold price hits a fresh two-week high on Wednesday (March 13th), as stronger than anticipate US data was being overshadowed by a robust Brexit sentiment and investors had been seeking safety on spot gold amid havoc-scale market turbulence ahead of another Brexit vote.
Spot gold daily price chart
While preparing this report, the Spot Gold was trading 0.5 percent higher at $1308.05 per ounce, breaching its highest level since March 1st.
Ahead of another Fed policy meeting due to be held on March 19th-20th, the traders are expecting another downbeat comment from Fed, although a study conducted by Switzerland Banks had reported increased possibility of another rate hike this year, as wage growth had reached 4.3 percent in February and inflation holds closer to 3 percent target of US central bank.
Apart from rate hike uncertainty, this month would be continuing to experience a higher level of volatility ahead of Brexit chaos and an EU-27 gathering on March 21st-22nd, which would experience a vote on whether the EU would allow UK to extend Brexit deadline.
On Tuesday (March 12th), spot gold breached an important psychological level at $1,300, largely boosted by a weaker dollar resulted by tepid inflation data and weaker than anticipated PPI numbers supporting Fed’s dovish stance. On today (March 13th), yesterday’s bullish bias remained intact as US dollar index fell for fourth straight session in a row.
Over the technical front, spot gold appears to be heading towards its critical resistance level around $1313, while initial support level resides at $1302 as it had been earlier. Apart from looming uncertainties ahead of Brexit chaos and US-China trade tension as well as Fed’s monetary policy dilemma, investors had also remained concerned over a slowing global economic growth, which was also boosting spot gold appeal, considering it a safe-store for value during political as well as economic uncertainties as usual.
Apart from crude oil and Spot gold, other commodities are considered to be safe-haven amid a turbulent currency alongside stock market on Wednesday (March 13th), as palladium climbed 0.2 percent to $1543.92 per ounce, and platinum rose by 0.8 percent to $843.94.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]