Latest News GOLD xauusd
The Precious Metal Appears Weak
Last time, in this price region, is notable sales were verified, so we expected the same thing this time, and this has happened in the latter part of last week. At the end of the week prices I fell toward $ 1240, before recovering slightly, and now are traded just below the level of $ 1250, as we write. However, both the correction took place after reaching the 1260 $ the subsequent price action should worry the bulls. The precious metal should soon attract a larger amount of buyers otherwise in danger of collapse.
In the short term the dollar is expected to be stable, but with the positive data released in the US during the past two weeks, expectations of an imminent rise in interest rates have increased. This is likely to keep gold prices under pressure, so we believe that the level of $ 1260 should be the maximum oscillation range in the short term. The bulls should have achieved their short-term goal, they take a break and they will some profit, therefore we do not expect that prices will break the $ 1260 threshold for the moment. For today, it is expected some further consolidation with bearish slope.
Oil prices have finally managed to break above the threshold of $ 50 and have continued rising sharply. Last week, the fuel has closed above $ 51, and although this morning there was a slight correction below $ 51, we believe that the decline is temporary and prices should recover strength. The rise was due to increased confidence for the successful continuation of the agreement on production cuts more than half of this year and also for the news that some countries such as Russia are in the process of achieving the objectives established in the agreement. The drop of inventory data on crude oil stockpiles in North America contributed to further support oil prices also helping to decline the offer and thus increase demand. We expect that this trend will continue in the short term, although any significant move will find a limit in the region of between $ 53 and the $ 55.