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Oil Stabilises, Gold Needs to Top Yesterday's High

COMMODITIES
  • WTI finished 4% below the cycle high printed early Monday, as oil benchmarks wrote off Middle-eastern tensions and focussed instead on the firming US dollar. Markets have stabilised so far Tuesday, with both WTI and Brent higher, but well off the Monday highs. This keeps the technical outlook unchanged, with focus on the $67.98/bbl level for WTI, and a climb back above $71/bbl for Brent.
  • Gold is firmer so far Tuesday, but remains within the February - March downtrend. A break and close above the Monday highs of $1714.38 would slow the downtrend and bring some stability to the outlook, but the re-correlation of gold with equity markets leaves precious metals needing a firmer stock rally this week to solidify gains.

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