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Spot Gold Consolidates Prior Strong Gains

COMMODITIES
  • Spot gold edged up a further 0.1% to $2,182/oz on Monday, expanding its winning streak to nine consecutive sessions as it consolidated its prior strong gains.
  • The yellow metal last week traded above resistance at $2135.4, the Dec 4 high, signalling scope for a climb towards $2206.6 next, a Fibonacci projection. Short-term conditions are overbought, however this does not appear to be a concern for bulls - for now.
  • Crude was trading lower at US close amid signs of weaker Chinese demand, while the market awaits inflation data ahead of the US CPI release tomorrow.
  • OPEC+ crude oil production rose to 34.62mbpd in February, up from 34.54mbpd in January and 0.30mbpd above the pledged output target according to Argus estimates.
  • WTI is +0.15% at $78.13/bbl. The WTI futures trend condition remains bullish and the recent breach of key resistance at $79.09 highlights potential for a continuation towards $81.70, a Fibonacci retracement. On the downside, support to watch is $76.52, the 50-day EMA.

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