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Crude Futures Trend Lower On Session, Gold Nears All-Time Highs

COMMODITIES
  • Crude is trending lower on the day, with Brent hovering around $90/b. The US dollar consolidating gains and rising US stocks are adding downside. There is also some pullback after yesterday’s spike on reports of “imminent” Iranian retaliatory attacks on Israel, with a strike yet to take place. Brent JUN 24 down 0.78% at 89.75$/bbl and WTI MAY 24 down 1.36% at 85.02$/bbl.
  • Despite this, a bull theme in WTI futures remains intact and the latest pullback is considered corrective. Last week’s rally reinforced current conditions and confirmed a resumption of the uptrend.
  • OPEC maintained its oil demand growth forecast for 2024 and for 2025 steady, while slightly lowering the non-OPEC supply forecast for this year according to the latest OPEC Monthly Oil Market Report.
  • For precious metals, spot gold showed resilience throughout the greenback rally on Wednesday and today’s softer details in the US PPI report have boosted the yellow metal, which zones in on another record high around 2365.
  • The latest climb maintains the bullish price sequence of higher highs and higher lows and note that moving average studies are in a bull-mode condition, reflecting positive market sentiment. The $2300.0 handle has been cleared. The next objective is $2376.5, a Fibonacci projection.

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