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Spot Gold Pares Gains From Fresh Record High, Crude Slips Back

COMMODITIES
  • Spot gold rose to yet another record high early in Monday’s session, reaching $2,353.95/oz, before paring gains over the course of the day.
  • The yellow metal is currently up 0.5% at $2,341/oz. While some analysts have continued to raise their year-end price forecasts, TD Securities note the risk of a reversal given the excess of safe haven demand in the absence of a further escalation in the middle east.
  • From a technical perspective, the trend condition in gold remains bullish, with sights on $2376.5 next, a Fibonacci projection. Initial firm support is at $2210.1, the 20-day EMA.
  • Meanwhile, crude had has slipped back today following cautious optimism of progress on a Gaza ceasefire deal. However, recent news of the proposal’s rejection by Hamas is likely to put a dent in such hope.
  • WTI May 24 is down 0.5% at $86.5/bbl.
  • Following the recent rally in WTI futures, the next objective is $89.08, a Fibonacci projection, a break of which would pave the way for a climb towards the $90.00 handle. On the downside, initial firm support to watch lies at $82.42, the 20-day EMA.
  • Front month Henry Hub has risen today amid upside support from above-normal demand.
  • US Natgas May 24 is up 2.9% at $1.84/mmbtu.

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