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Gold Tanks, Oil Turns Negative, Bitcoin Lower

By Ed MoyaStock MarketsJun 16, 2021 04:36PM ET
www.investing.com/analysis/gold-tanks-oil-turns-negative-bitcoin-lower-200586567
Gold Tanks, Oil Turns Negative, Bitcoin Lower
By Ed Moya   |  Jun 16, 2021 04:36PM ET
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Oil

Crude prices gave up earlier gains after a surprisingly hawkish FOMC dot plot sent both Treasury yields and the U.S. dollar higher.  WTI crude rose after a mostly bullish EIA crude oil inventory report.  Americans are travelling as jet fuel demand improved to the highest level since the end of May and as gasoline demand rose by 900,000 bpd.

Saudi Energy minister noted that the oil market is not out of the woods yet and that the OPEC+ cautious approach is paying off. 

The short-term rebound in the dollar will likely be a speed bump in WTI crude’s path higher. 

Gold

Gold lost its mojo after the Fed’s latest economic projections showed the last call for stimulus was nearing. The Fed’s hawkish pivot is a major buzz-kill for gold bulls that could see some momentum selling over the short-term.  Short-term Treasury yields will continue to rise, and that should provide some underlying support for the dollar, which will keep commodities vulnerable. 

Despite the recent weakness for gold over the past week, gold’s medium-and-longer term outlook remains bullish. The line in the sand that needs to be defended for bullish bullion investors is the $1,800 level.   

Cryptos

Bitcoin pulled back after testing the upper boundaries of its recent $30,000 to $41,000 trading range. Bitcoin needs to add another log on the fire to get cryptocurrency traders excited. Following the El Salvador commitment to Bitcoin, the cryptocurrency community is awaiting which country is next. Bitcoin either needs to show progress on becoming carbon neutral or have a couple more countries accept Bitcoin as legal tender. 

A stronger dollar sent Bitcoin tumbling as all risky assets sold off. Bitcoin’s consolidation phase should continue a while longer.  

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Gold Tanks, Oil Turns Negative, Bitcoin Lower
 

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Gold Tanks, Oil Turns Negative, Bitcoin Lower

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Comments (5)
Mehmet Dutlu
Mehmet Dutlu Jun 17, 2021 3:25PM ET
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the short term rebound in the dollar?? with the short term you mean at least 6 months, right?
Steve Siew
Steve Siew Jun 16, 2021 10:31PM ET
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The Fedus boxed ina liquidity trap. There is mo way the Fed can raise rate and nit reverse it ir the market crash. Which is which? Your guess is as good as mine
R T HUDGINS
R T HUDGINS Jun 16, 2021 6:57PM ET
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All FED induced
Tom Jones
Tom Jones Jun 16, 2021 6:57PM ET
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FED-induced run up, now the run down. Way down into bear mkt territory cuz mkts always overreact.
Joel Schwartz
Joel Schwartz Jun 16, 2021 6:57PM ET
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Tom Jones Right? It’s almost like we should have free markets that don’t hinge on central banks more than company fundamentals - both on the way up and down.
Ray Steed
Ray Steed Jun 16, 2021 6:40PM ET
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stocks only game in town. still
Tom Jones
Tom Jones Jun 16, 2021 6:40PM ET
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Not tomorrow morning…
Black buck Records
Black buck Records Jun 16, 2021 5:09PM ET
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how to calculate gold price according to 1812 into inr
 
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