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Crude Oil Sees A Second Almost 5% Slide But Gold Spurred By Weaker USD

COMMODITIES
  • Crude oil has slumped further today, with WTI currently -4.7% after yesterday’s >5% decline, attributed to further demand concerns and with an additional rolling over back closer to session lows after the FOMC went through with a mostly priced 25bp hike.
  • OPEC+ will monitor the situation on the oil market according to Russia Deputy PM Novak based on Tass reports, with it necessary to understand the reasons for the price drop and whether it may prove temporary. Further cut commitments by Russia will be drawn into question by the market based on its oil exports remaining high despite claims of 500 kbpd cuts.
  • WTI is -4.7% at $68.32, having pushed through the round $70, further support at $69.02 (76.4% retrace of Mar 20 – Apr 12 rally) and coming close to $67.02 (Mar 24 low).
  • Brent is -4.3% $72.05, pushing through support at $74.06 (76.4% reatrce of Mar 20 – Apr 12 bul run) and $72.34 (Mar 24 low), opening a key support at $70.10 (Mar 20 low).
  • Gold is +0.45% at $2025.77, supported by the DXY slipping through the day. The yellow metal has pushed through resistance at $2019.4 (May 2 high) and briefly spiking to $2035.95 on FOMC-related volatility. The bull trigger remains at $2048.7 (Apr 13 high).

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