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Gold Surges With Fed-Triggered USD Slide, Crude Also Benefits

COMMODITIES
  • Crude futures have been supported today by first a larger than expected draw in US crude inventories from the weekly EIA data before a tailwind from a sharp fall in the USD index on the FOMC’s dovish SEP and Fed Chair Powell’s press conference.
  • EIA Weekly US Petroleum Summary - w/w change week ending Dec 08: Crude stocks -4,258 vs Exp +20, Crude production 0, SPR stocks -6.
  • Two missiles fired from Yemen’s Houthi rebel territory missed a tanker loaded with jet fuel near the Bab el-Mandeb Strait on Wednesday according to AP News reports citing US officials. The Marshall Islands-flagged tanker was traveling north toward the Suez Canal in the Red Sea.
  • OPEC left oil demand growth expectations for this year and next unchanged while raising its 2023 global economic growth forecast in its latest monthly report.
  • WTI is +1.25% at $69.47, but remains well within yesterday’s range after declining heavily to late June levels. Resistance is seen at $71.96 (Dec 12 high) whilst support is seen at $67.28 (Jun 23 low).
  • Brent is +1.4% at $74.26. Key short-term resistance is seen at $76.66 (Dec 12 high) whilst support is seen at $71.45 (Jun 23 low).
  • Gold is +1.9% at $2016.54, surging higher to unwind the slide seen since US payrolls on Friday. It punches through resistance at $2003.9 (20-day EMA) to open $2041.3 (Dec 5 high).

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