OctaFX | OctaFX Forex Broker
Open trading account

Commodities Brief – Precious metals rally on weak US data, crude falls below 91.00

With investors tuned into the impending situation surrounding the sequestration, gold prices has spent European trading entrenched in negativity. Indeed, the yellow metal bottomed out at 1564.45 (intraday minimum), however the publication of very weak economic data in the United States cast doubt on the economic strength, thought to be so optimistic as recently as yesterday afternoon. At the onset of the US open, gold prices have recovered and pared all of their losses, storming back above their 20, 50 and 200-SMA en route to 1587.05 (intraday maximum) – in these moments however, the price has eased slightly to USD $1582.85 per oz.

Silver pare losses after beaching 28.00 level
Silver had experienced a similar cataclysmic fall Friday, as European trading took the prices as far down as 27.97, before heavy support reinforced the white metal. With compound situation of the sweeping budget cuts and poor US data, silver has engineered a reversal, having settled at USD $28.63 per oz. in these moments. As American trading begins to get underway, any updates or abandonment of the negotiation process in Washington has the potential to mold investor confidence, which should affect precious metals – seen as the safe haven.

Crude falls sharply
WTI Crude did not receive the same memo that its other commodity counterparts were in a recovery rally. Earlier today, during the afternoon of European trading, crude prices lost their grip on the 91.00 level, falling as low as 90.58 (session low) in recent minutes. Friday has not been kind to crude, and at the time of writing prices have settled at USD $90.72/bbl.

US: Markit Manufacturing PMI in February rose to 54.3

The final Markit Manufacturing PMI for the month of February has beaten expectations rising to 54.3 vs. 52.5 and January’s 55.8...
Read more Previous

Forex Flash: Italian uncertainty to foster heightened risk – RBS

The Italian election result appears to have produced no clear winner across both houses of parliament, and Monti’s centrist coalition, most supportive of the current austerity path, polled a distant fourth, making it largely irrelevant. According to the Greg Gibbs, an FX Trading Specialist at RBS, “It thus may be ungovernable and creates a sudden descent back into uncertainty over the future of the economic policy direction in Italy and the willingness of the ECB to use its OMT to support the Italian bond market.”
Read more Next
Start livechat