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Volatile Crude Session Whilst Gold Does Well To Limit Declines

COMMODITIES
  • Crude oil currently edges out gains on what’s been a volatile session. Tighter supply from Saudi Arabia and Russia remained at the fore earlier in the session before the US dollar’s resurgence briefly appeared to weigh as gains were more than reversed only for crude to then bounce back despite only a minimal dip off session highs for the USD index.
  • Loadings at Shell’s Forcados oil terminal remain suspended and Shell is likely to have to defer several cargoes planned to load this month into August. Russian Urals STS transfers paused so far in July with only one transfer reported.
  • WTI is +0.2% at $75.51. Resistance remains at $78.03 (76.4% retracement of Apr 12 – May 4 bear leg) and support at $72.31 (20-day EMA).
  • Brent is +0.1% at $79.53. Resistance remains at $82.06 (76.4% retracement of Apr 12 – May 4 downleg) and support at $77.79 (20-day EMA).
  • Gold is -0.3%, holding up well considering USD strength and the scale of the push higher in Treasury yields after a lower than expected initial jobless claims print in a period covering the payrolls reference week. An overnight high of $1987.45 briefly cleared key resistance at $1985.3 (May 24 high), which if sustained in the near-term could open $1993.8 (2.0% 10-dma envelope).

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