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Commodities Brief – Gold fails to breach 1600 barrier, falls off highs following Italian outcome

Gold prices surged earlier today during the overnight session and during European trading as investors braced for the results of the Italian electoral outcome. With news of a Bersani-led coalition set to take power the yellow metal waned slightly as it fell off its session high of 1594.05, losing strength in recent minutes to trade in familiar territory at USD $1586.45 per oz. At this juncture, the gold is being stabilizes by its 200-day SMA, which figures to hold the pair (1600 is a psychological barrier after earlier attempts failed to overtake the region today). In these moments, the price of gold is still in positive territory, up +0.93%.

Silver has played to the same tune Monday, as the price broke above the 29.00 barrier during European trading, peaking briefly at the 29.22 level. At the onset of European trading and following the Italian results, the white metal has pared its gains, falling back below the 29.00 mark. At the time of writing, Silver is trading at USD $28.92 per oz., which marks a +1.72% advance today. Market investors will see if the prices can retake the 29.00 before close, which has to signal confidence after the pullback last week.

WTI Crude oil was given a breath of hope earlier as prices overtook the 94.00 barrier, en route to a maximum of 94.18. However, Italian results have stymied the advance, causing a pullback towards USD $93.58/bbl, currently where crude is operating Monday.

Forex: EUR/USD awaits Italian election polls, capped by 1.3316

The EUR/USD upside extended above the 1.3300 mark, coming to as high as 1.3316 before easing back to just below the psychological level. US Chicago Fed national activity index is already out, down from 0.25 (revised from 0.02) to -0.32 in January, but investors are more focused on the Italian elections. The voting process is closed and now is time for first polls.
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Session Recap: Euro firmer as Italian centre-left party leads polls

The European session was relatively quiet with most currencies reversing their Asian bias. The US dollar trades lower overall, with the euro wavering around 1.3300 as investors await news from the Italian election. First exit polls show Italy's centre-left leads in election. Elsewhere, the yen retraced early losses versus the dollar and the pound remains under pressure after Moody's downgraded the UK. The Aussie is a tad firmer as it shrugged off disappointing Chinese data, while the CAD remains virtually unchanged.
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