The bears started off yesterday with so much strength. Price tumbled with no pullbacks during the London Session. This was due to the fact that the dollar was soaring nicely after the GBP weakened following the negative retail sales data reported. Price tumbled until it hit its one year low. The gold price had a 1.3% decrease falling from 1228.20 to 1212.07 which was indicated as the previous one year low level.
But price did not end the day with a 1.3% decrease. It started recovering during the overlap of London and New York sessions. This pullback took place when the dollar had a small retreat following the comment from the U.S president stating that he was not happy with the interest rate hikes of his country. The gold price then bounced from the one year low and ended the day with a total decrease 0.4%.
At the moment price is sitting at 1223.19. By hitting the support level at 1212.07, price created a lower trough. So, Before tumbling down again, price might create a lower peak. If it doesn’t create the lower peak then it will free fall towards the support level at 1212.07 again.
Today there will be news on the Canadian Consumer Price Index. These news might have an impact on the dollar which means they might have an impact on the gold price. So, it is adviced to trade with caution.
Yesterday the fight between the bulls and the bears was a serious one as the oil price moved up and down. Price decreased to 71.88 level then it pulled back from that level after Saudi Arabia announced that it will slow down on pumping out supply. This means that the oil supply will decrease by about 100 000 barrels per day in August.
After the battle between the bulls and the bears, price ended the day with a total decrease of 0.7% At the moment price is sitting at 72.75 which is at the resistance level. For the fact that price created a lower peak, it might continue falling towards the support level at 70.80.
But since price is sitting on a resistance level, there is a possibilty that it might rise a little to adjust its lower peak before falling towards the support level at 70.80.
PLATINUM
The price of platinum decreased and went past its two and a half year low during the London session. Price reached 789.8 level after falling from 816.4. The decrease in price was caused by the strengthening dollar. But price then had a small recovery and ended the day at 803.8 where it is currently sitting.
When price reached 789.8 level it created a new lower trough. Before price can continue to fall again, it might have a pullback to create a lower peak. Since price is sitting at a support level which happens to also be its two and a half year low, if it falls further, then it will fall towards it’s 10 year low at 732.8 (shown on the monthly chart).
The Canadian news on Consumer Price Index scheduled for today might have an impact on the dollar, which will result in and impact on the platinum price. So, take that into consideration when placing any trades for the day.