Gold
Spot gold tested 1217$ yesterday, It could not sustain on higher levels as dollar marched higher once again capping gold gains once again. Currently xauusd trading at 1209$ losing all its momentum to dollar. Dollar is trading at 95.61, it is trading at highest point of the year. Greenback is nearly half percent up against major world currencies. Read more about Greenback/Dollar here
Dollar strength is mainly due to lower unemployment claims which came yesterday. Despite falling stock market dollar is firing with full guns. Investors are very confident about US economy. Small concern which they had after lower than expectations non farm data was erased by unemployment claims yesterday. Stock market is not still convince about the idea of great economy. It has fallen nearly 250 points from peak and our subscribers booked nearly 150 points in Dow Jones Index.
- Good support in price of gold chart stands at 1204$, This is last week’s low which would be a crucial support now, If traders break and sustain below this level. Then expect further pressure in this major commodity up to 1200$- 1191$.
- Good resistance in price of gold chart stands at 1218$, This is the high gold is trying to test since 2 weeks. Once market break and sustain above our resistance. Then expect slight recovery up to 1222$- 1228$.
Silver
Spot silver tested 15.50$ yesterday and now crashing towards the support of 15.25$. Yesterday it tried to go past resistance of 15.55$ which we updated in our twitter. Even this precious metal is under pressure due to strong US dollar.
- Good support in price of silver chart stands at 15.25$ now, If market break and sustain below this level. Then expect further pressure in this major bullion up to 15.05$- 14.80$.
- Good resistance in silver chart stands at 15.55$, If market break and sustain above this level. Then expect expect small recovery till 15.70$- 15.92$.
Crude oil
Crude oil price is falling since US inventory came worse than expected. Currently prices are trading at 66.10$. Despite good US economy and good consumption sign market is falling due to higher inventory and good supply specially from Saudi Arabia.
- A good support on this major commodity chart stands at 65.20$, If market break and sustain below this level. Then expect pressure in oil prices till 64.30$- 63.30$.
- Resistance on crude oil chart stands at 67.30$, If traders manage to break this hurdle and sustain above our resistance. Then expect small recovery in oil till 68$- 69.20$.
Euro
Euro has paid the price of strongest US dollar this year. It has crashed badly as Euro has highest percentage in US dollar. Currently its trading at lowest point of the year at 1.1460. It has made low of 1.1437 sending a strong sell signal on all charts.
- A good support on this major forex chart stands at 1.1420, If traders break and sustain below this level. Then expect eur/usd to test up to 1.1400- 1.1370.
- A good resistance on this major forex pair stands at 1.1505 only. Above this only expect small relief in euro. Once market break and sustain above 1.1505 then expect small rise up to 1.1550- 1.1590 in euro.
Conclusion
Strong US Dollar has destroyed all gains by precious metals and Euro. It has put pressure on all commodities directly or indirectly. Currently bullion market is in weak zone so avoid buying precious metals. Crude oil also under pressure due to high inventory. Euro is weak as well.
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