Oil:
Oil closed yesterday just above $96 a barrel, having continued to trade in its slim range between $95 and $97 a barrel.
Breaking its support level of $95 may trigger a downwards momentum downwards to $92 to $93 a barrel as profit taking is still well intact.
Future demands for oil did not improve even after good results from the housing market in the US. The CS composite showed yesterday a break upwards for home prices in the US after 2 years, following great results from the past few weeks. There is a current balance between stimulus expectations from the FED and better economy results. This has kept oil volatility in the hands of the tropical storm Isaac, tensions from the Middle East and oil inventories.
Today we should expect a 1.7% GDP growth from the US and oil inventories should decline once more. Any surprises in the outcome of these results could influence the price of oil greatly.
Gold:
Gold closed yesterday at $1667 an ounce after a volatile trading session, and is still trading in its range between $1660 and $1672. This range is declining in the past few days and support at $1650 is already activated.
Gold’s high peak of $1678 has come too early as expectations for more ease to global economy will be addressed later this week and in mid-September. At the present time, no news is bad news for gold. In the midst of good housing results and before Bernanke’s speech in Jackson Hole on Friday, the commodity looks slightly bearish.
The CB confidence report yesterday revised gold’s decline after good results from the housing market, but the resistance of $1671 will be well intact if good news keeps pouring in from the American market and there is no boost from executives on more monetary ease.