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GOLD AND CRUDE OUTLOOK: 01-08-2016

GOLD AND CRUDE OUTLOOK: 01-08-2016
July 31
15:14 2016

GOLD

Gold is still moving up with good buying interest.  Gold manufacturing companies stocks were also in good demand in international markets after easy monetary policy in US, events like BREXIT and U.S Presidential election. Gold has immediate resistance at $1364 per troy ounce.  Support for lies at $1336 and $ 1325 per troy ounce. Price declines can be utilised to accumulate gold for a medium term.

CRUDE

Crude is weak due to high production lower demand and US crude rigs counts have surged as oil prices sink.  Crude oil prices rose from $26 per barrel to $51 per barrel by early June.  Now corrections started and Crude is likely to test $40.54 and $37 per barrel in the near term.  Crude has resistance $42.30 and $43.11 per barrel.  Many of the oil producing companies like Exxon Mobil Corp, Royal Dutch Shell PLc reported their lowest quarterly profits since 1999 and 2005 respectively.  This is a clear indication that these companies may reduce their fund allocations for oil exploration in future.

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ALEX MATHEWS

ALEX MATHEWS

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