Yesterday the bulls gained a lot of strength after having been weak since the beginning of the week. Price rose with about 1.7% from a straight two days’ drop. It is believed that the decrease in gasoline stock changed the mood in the oil price. It actually resulted in oil having more buyers.
Price increased from 71.78 to 73.04 where it is currently sitting. Following the price action, this increase can be seen as a retracement to create the next lower peak and price might continue to decrease after this current pullback. Should it drop then it will fall towards the support level at 70.80.
If the gasoline stock continues decreasing this might result in oil price moving higher as buyers will increase.
The price of gold has been falling since the beginning of the week as the bears has been in control. Yesterday price decreased to 1220.99 level then towards the end of the day it rose to 1228.20 where it is sitting at the moment. The reason price rose from the 1220.99 level is the fact that dollar experienced a small retreat as data showed a decrease in U.S housing market.
This retracement of price from 1220.99 to 1228.20 caused the gold price to have an overall gain of 0.07% for Wednesday. When looking at the price action, price is still going to be under pressure and we are still going to see it decrease. After having created a lower trough, it might pullback to create a lower peak before falling but there is also a chance that it might continue falling towards the support level 1212.07 without any pullback.
Today there will be news on U.S weekly jobless claims and Great Britain retail sales that might have an impact on the dollar and in result having an impact on the gold price. So trade with caution to avoid any trade complications.
As it was expected yesterday, price of platinum reached the support level at 805.5. But price retraced following the U.S housing markets news which negatively affected the dollar, giving a rise to the platinum price. Price is currently sitting at 816.4 giving it an overall increase of 0.4% for the day.
The U.S weekly jobless claims and Great Britain retail sales news scheduled for today might end up having impact in the price of platinum. So bee on the lookout for that when placing any trades during the day.