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Crude Finds Late Support, Spot Gold Edges Lower

COMMODITIES
  • Crude had struggled for direction during the day, but has found some support near the US close. A weaker US dollar amid a more dovish May FOMC outcome, is likely adding some support. The Bloomberg dollar spot index is down to its lowest since April 12.
  • WTI Jun 24 is down 0.1% at $78.9/bbl.
  • Wires reporting that Hamas have agreed with Qatar to continue talks on a truce in Gaza.
  • For WTI futures, support at the 50-day EMA, at $81.14, has been breached, opening $76.07, the Mar 11 low. Key resistance and the bull trigger has been defined at $86.97, the Apr 12 high.
  • Meanwhile, Henry Hub has jumped today amid a smaller than expected injection into US natural gas storage and a continued recovery in US LNG feedgas flows.
  • US Natgas Jun 24 is up by 5.4% at $2.04/mmbtu.
  • Spot gold is down by 0.5% on Thursday to $2,307/oz, leaving the yellow metal 5% below its mid-April high.
  • During the session, gold again breached initial support at $2291.6, the Apr 23 low. A continuation lower would signal scope for an extension towards $2245.2, the 50-day EMA.

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