After 8 failures, gold is fighting a major key resistance.
June 10, 2019
With the help of non-agricultural data, international gold ushered in a perfect ending on Friday. The cumulative increase of 2.7% in a single week recorded the best result in nearly one year. The gold futures contract on August of the New York Mercantile Exchange also recorded for 8 consecutive trading days. Rising, the longest consecutive increase since January 2018.
On the contrary, the US dollar has become the victim of the weak non-agricultural data, which showed its decline last week. Richard Franulovich, head of foreign exchange strategy at Westpac, said on Thursday that the trend of weaker dollar prices has gradually become apparent, or it will usher in an important turning point.
In contrast, the experience of the crude oil market is even more turbulent. Under the influence of risk aversion and the continued surge in US crude oil inventories, international oil prices continued to fall sharply, and US oil fell into a technical bear market, and the outlook is worrying. Standard Chartered's "bull-bear market index" shows that the current bull market-bear market index for the oil market is -96.7, only slightly better than the extreme value of -100 two weeks ago. Analysts pointed out that since the financial crisis, oil prices have experienced such a serious four-week losing streak for the first time, and the fundamentals of the oil market are moving in a very pessimistic direction.
Fortunately, last Friday, Saudi Energy Minister Falih said that OPEC+ will extend the production reduction agreement, driving the US and the two oils to rise 2% in short-term, and recover some losses. However, the outlook for the oil market is still full of uncertainty as non-OPEC countries have not agreed to extend the production cuts.