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Spot Gold Rises To Fresh Record High, Crude Slides On Day

COMMODITIES
  • Spot gold rose through the May highs today to reach a fresh all-time record above $2,466. Renewed focus on Fed rate cuts following the US inflation data last week remains the primary driver, with last Thursday’s break back above $2,400 kick starting the next leg higher.
  • Currently, spot is trading just below the highs at $2,465/oz, up 1.8% on the day.
  • Having now breached the bull trigger, technical conditions remain firmly in bullish territory, signalling scope for a move towards $2,481.5, the 2.764 Fibonacci projection of the Oct 6 - 27 - Nov 13 price swing.
  • Meanwhile, silver is also up by 2.0% today to $31.3/oz.
  • For silver, the recent break of $30.853, the Jun 21 high, is a bullish development. A continuation higher would signal scope for a test of the key resistance and bull trigger at $32.518, the May 20 high.
  • In contrast, copper has fallen by another 1.7% to $445/lb today, amidst concerns about weaker demand in China, leaving prices down by 3% so far this week.
  • A bearish corrective cycle that started May 20, remains in play for now. A resumption of the bear leg would open $426.12, a Fibonacci retracement.
  • WTI has lost ground today, facing further weakness amid sustained demand fears out of China and USD strength.
  • WTI Aug 24 is down 1.5% at $80.7/bbl.

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