Gold regained above $1900/Oz during yesterday’s trading, reaching as high as $1910 but it failed to sustain these gains during the Asian session today, leading to another leg lower back below $1900/Oz.
Oil: about to beat $63?
2021-02-24 • Updated
After reaching $63, WTI oil bounced downwards. Partly, that was due to the news that the US oil reserves turned to be more than expected - that's still the echo of the virus preparations that made many oil producers stockpile oil in case of an emergency deficit. However, as the demand is picking up, it seems those stockpiles may be no longer needed: the recovering global economy needs more oil. Therefore, the demand side of the equilibrium is on the good track now. The supply is what may have bigger concerns: we are yet to see how Russia and Saudi Arabia resolve their issues during a new round of OPEC+ talks on March 4. Technically, the channel indicated in the below chart appears to be valid in the short-term: after crossing $63 into the upside, the price is expected to make another correction - possibly, to $62, and then will pick up again. Watch it closely as the closer it is to the OPEC+ meeting, the more the volatility of the oil price may become.
USD/CAD declined once again to the same support area between 1.2040 and 1.2020 which remains solid for over three weeks now.
The US Dollar Index tested the higher line of its downtrend channel on the daily chart but failed to breakout, following the disappointment of the 2nd reading of Q1 GDP.
The amount of problems caused by the coronavirus pandemic is huge…
The Federal Reserve kept the current policy as widely expected. However, the surprise came from the Dot Plot.
Everyone is interested in trading gold (XAU/USD). The meeting of the Federal Reserve at 21:00 MT time (GMT+3) will certainly drive the price.