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Gold Clears Latest Resistance On Escalating Middle East Tensions

COMMODITIES
  • A weaker USD before escalating tensions in the Middle East have seen oil and especially gold surging late in the session.
  • Reuters has reported rockets and drones hitting an Iraq base housing US forces, whilst the Pentagon has said a US base in Syria was targeted yesterday by two drones and Brigadier General Ryder says a US destroyer has shot down cruise missiles and drones from Yemen which are believed to have been aimed at Israel.
  • WTI trades +2.2% at $90.32 having just pulled back off a high of $90.55. It moves closer to resistance at $91.84 (76.4% retrace of Sep 28 – Oct 6 bear leg).
  • Brent trades +1.85% at $93.19, just off a high of $93.33. It’s through yesterday’s high of $93.00, with next resistance at the bull trigger at $95.35 (Sep 28 high).
  • Gold trades +1.4% at $1976.20 off a high of $1977.91, clearing $1965.5 (61.8% retrace of May 4 – Oct 6 bear leg) to open $1987.5 (Jul 20 high).

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