The Yellow Metal Resumes Growth from the East

On Monday, Brent crude started falling after last week’s highs. A slightly strengthening dollar and Friday’s statistics on rigs, which showed an increase of 2 after a decrease of 1 the week before, played a key role. Despite the aggressive US oil policy, we have to note that the rate of growth in the number of rigs has slowed. This may be a factor in oil’s rise in the next few days.

Then again, oil’s active growth last week could not last for long: even the slight stabilization of the dollar slowed the uptrend, and the majority of investors successfully took their profits, lowering the cost of oil by almost $0.50.

Investors will now await Tuesday’s data from the American Petroleum Institute (API) and statistics from the International Energy Agency (IEA) before drawing any conclusions. And, of course, they are awaiting actions by OPEC+ representatives on the eve of the meeting.

After a record fall to $1245 by the end of last week and strong growth after US data came out on Friday, gold managed to reach $1265, settled, and fell on Monday. The trading high was a little above $1270. But a slight correction was not long in coming, which led to a decrease to $1266 with support at $1265/1262.50. Gold has potential for growth because of rising demand for the metal among investors in the Middle East and Southeast Asia, but we should not expect any new records in the next few days.

US indexes took the fact that the Fed rate remained unchanged badly, but now continue to correct, adding 0.25-0.6%. The S&P 500 though fell Monday after the data were released at 2:00 pm GMT, holding fast below 2470. This uptrend will most likely continue through Thursday.

European indexes continue to fall because of the euro’s rise: Germany’s DAX fell below 12130, after reaching 12250 last week. Even Britain’s FTSE 100 fell: although the pound sterling is not strengthening as much against the dollar, the index’s general trend is now toward a moderate decline.

Asia-Pacific region indexes are trading mostly up, except Japan’s Nikkei 225, which is still falling on the strengthening of the Japanese yen. There is not much news about how disastrous Abenomics are considered, but analysts are already considering the possibility of Abe’s resignation.

Yuri Prokudin, Olymp Trade

Olymp Trade Review