Gold has continued to remain heavily under pressure once again in today’s gold trading session, with the bears in full cry, as the precious metal moved relentlessly lower to trade at $1238.70 on the December contract at time of writing.
In a post several days ago, I described the recent price action for the major US indices as perhaps the most elegant we have ever seen, arching higher through August and into early September before reaching a plateau.
The short term rally for crude oil, came to a shuddering halt yesterday, as the December WTI futures (USO, quote) contract closed at $92.88 per barrel, having shed over $3 per barrel on the day, closing as a wide spread down candle on the daily chart.
Like many of the major currency pairs at present, it’s US dollar strength which has been the primary driver over the last few weeks, and for the USDCAD, which moved firmly lower once again, the decline in the price of oil has also added further momentum to the move.
Following on from my recent posts about the bearish nature of the USDCAD and the medium term prospects for the Loonie, today’s advance GDP release has helped to drive the Canadian lower once again, accelerating its downwards progress and adding to yesterday’s wide spread down candle.
Following continued bullish momentum for many of the major currency pairs, these are now approaching key technical levels, which if breached could prove to be the tipping points for some sustained and longer term trends to develop.
The Aussie dollar (AUSUSD) continued to build on the bullish momentum of the last few weeks, with the June futures contract closing the session with a wide spread up candle on the daily chart, surging through the 0.9300 region on good volumes.
Last week was a volatile one for crude oil futures, with the April contract closing the week at $102.58 a barrel having touched $105 per barrel at the start of the week.
On a slow news day, with only Construction PMI on the horizon in the UK, Ukraine will continue to dominate.
Gold’s recent bullish momentum appears to be holding firm for the time being, and indeed February has been a positive month with only minor pullbacks and reversals denting the move higher.
