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Gold Through Post-Payrolls Support As USD Strength And Treasury Sell-Off Weighs

COMMODITIES
  • Crude is pulling back towards the lows of the day as the market assesses global economic growth uncertainty in the US and China against near term supply disruptions from OPEC, Iraq and Canada. A steadily strengthening US dollar since US retail sales has added to the downside pressure while US SPR restocking plans from August are providing some support.
  • WTI is -0.6% at $70.67 but remains comfortably above yesterday’s lows plus also support at $68.48 (May 5 low). In options space, by far the most active strikes today have been $70/bbl puts in the CLM3.
  • Brent is -0.65% at $74.74, still comfortably off support at yesterday’s low of $73.49.
  • Gold is -1.3% at $1990.13 with the strengthening in the USD and higher Treasury yields weighing heavily. It has pushed through support at $1999.6 (May 5 low) seen after payrolls to open $1976.3 (50-day EMA).

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