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Commodities Brief – Gold prices rebound Friday amidst the indecision surrounding the US stimulus program

Gold prices rebounded on slightly Friday during overnight trading, extending on the tepid advances made Thursday, after which a tranche of economic indicators in the United States pointed to an uneven recovery in the world’s largest economy. Perhaps far more importantly as of late for the yellow metal, hopes were raised that Federal Reserve monetary stimulus would continue. Earlier today, prices peaked at 1586.75 before ultimately waning during European trading down to the 1580 region. However, in recent moments, Gold prices have rebounded towards USD $1582.75 per oz. at the time of writing, with the 20 and 50-day SMA acting as temporary resistance. Looking ahead today, the division amongst US policymakers on whether it should halt its stimulus program should continue to weigh heavily on gold`s inflation hedge appeal.

Conversely, Silver prices experienced a similar recovery, though gains were limited to the 28.91 region, unable to retest the psychological 29.00 mark. Moreover, the white metal also slipped recently, retracing back towards 28.78 before a bounce in recent moments has lifted the white metal back to USD $28.85 per oz. Friday.

Yesterday’s brief fall below the 93.00 level proved to be a lingering weakness for Crude oil as it could not garner any momentum across any session. Friday has continued this trend, though prices have remained stable above the 93.00 mark, despite a recent test of it. In these moments, Crude oil is trading at USD $93.28/bbl during the midst of European trading.

Forex: USD/CAD trading negatively at 1.0176/78

The USD/CAD fell during overnight trading, down to a session low of 1.0157 Friday, before ultimately bottoming out and stabilizing. European trading however has seen a jump in the exchange, as an 18-pip jump in recent minutes has been tentatively kept the pair in the region of 1.0176/78 – where the cross trades presently.
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Forex Flash: GBP/USD may rebound near term ahead of further losses - Commerzbank

Commerzbank analysts expect the GBP/USD to do a near term rebound ahead of further losses below 1.5131: “We note the TD perfection set up on the 240 minute chart and the Elliot wave count is pointing to a 1.5380./1.5425 and possibly 1.5525 correction ahead of further weakness”, wrote analyst Karen Jones, adding that this week's sell off sliced through the 1.5271/35 target (2012 low and the 50% retracement of the move since 2009) with ease. “This is extremely negative price action and beyond a rebound we look for losses to 1.5000 and then 1.4853, the 61.8% retracement of the 2009 move”, she continued, pointing to initial resistance at the 1.5271/35 previous support then 1.5400/23 ahead of the 1.5651 accelerated downtrend.
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