4 Jun 2015
Commodities sell-off, approaching critical supports
FXStreet (Buenos Aires) - Commodities are in sell-off mode, with spot gold down to $ 1,176 a troy ounce a fresh 1 month low, and WTI crude oil prices sinking towards $ 58.00 a barrel, as the dollar is back on demand. Better-than-expected US minor employment figures have gave the greenback an initial boost early in the US session, when the American currency was under strong selling pressure due to soaring German yields. But following the initial spike in the greenback, investors rushes to take profits out of the table ahead of US Friday Nonfarm Payroll release, triggering wild moves across the board.
In the news, the IMF is urging the US to delay a rate hike for the first half of 2016, but at the same time EU Junker has declared a Greek deal is far from being achieved this week. Furthermore, the troubled country seems to be planning a Parliament vote, late Friday, to debate on bailout talks. Rumors are also that Tsipras will call for a confidence vote then.
Gold prices are holding near the daily low, having so far set a daily low of 1,173.95, with scope now to test 1,170.11, late April daily low, should the decline extend. As for WTI, a downward acceleration through the 58.00 level exposes the commodity to a continued decline down to May 28th daily low, set at 56.50.
In the news, the IMF is urging the US to delay a rate hike for the first half of 2016, but at the same time EU Junker has declared a Greek deal is far from being achieved this week. Furthermore, the troubled country seems to be planning a Parliament vote, late Friday, to debate on bailout talks. Rumors are also that Tsipras will call for a confidence vote then.
Gold prices are holding near the daily low, having so far set a daily low of 1,173.95, with scope now to test 1,170.11, late April daily low, should the decline extend. As for WTI, a downward acceleration through the 58.00 level exposes the commodity to a continued decline down to May 28th daily low, set at 56.50.