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GOLD AND CRUDE OUTLOOK:15-08-2016

GOLD AND CRUDE OUTLOOK:15-08-2016
August 15
02:16 2016

 Gold

Gold remained subdued last week with support at $1326 and $1311.70 per troy ounce.  It will have resistances at $1351 and $1363.50 per troy ounce.  Gold imports to India drop 76% in April – July 2016.  The domestic demand will pick up from September last onwards due to festive season in India.  If there is any panic selling it would be advisable to invest in gold because of global economic volatility, US Presidential election and BREXIT repercussions.

Crude

 As crude is on recovery mode, profit booking is expected in OMC stocks which had made huge leap in its share prices.  On the other hand Crude Oil producers private and public sector stocks will move up from the current level, because these stocks are also ripe for an uptrend breakout.  As the crude prices are on positive territory after Saudi’s Energy Minister hinted that Saudi will take necessary steps to open discussions next month for stabilizing the crude oil price.  The comment prompted the short sellers to cover their short positions and which lifted the crude price towards $45.  Crude has supports at $43.33 and $42.70 per barrel.  It will face resistances at $44.98 and $46 per barrel.  On Friday US Bureau of the census said that the retail sales were unchanged in July on a month on month basis.  Weak retail sales data put pressure on dollar, which further can lift crude oil prices, and gold prices.

 

 

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ALEX MATHEWS

ALEX MATHEWS

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