Oil:
Oil closed yesterday at $95.5 a barrel on the lower edge of its $95 to $97 trading range. Its support level of $95 will remain strong at least until unemployment claims published today.
Weather volatility has been correlated with oil volatility these past few days, and prices may still be further influenced by storm Isaac.
Oil inventories published yesterday showed an improvement in oil supply. The price declined more than 0.5% before results were published and investors saw more room for a further drop in price shortly after. Yet the strong support level at $95 kept oil within its range.
Positive pending home sales in the US combined with GDP growth as expected in the US did not revise future stimulus expectations by the Fed, with the price mostly affected by oil inventories.
Gold:
Gold closed yesterday at $1660 an ounce and is continuing its bearish profit taking session that has been in effect since its very high peak of $1678 a few days ago.
Profit taking will fade away before today’s unemployment claims publication and speculation will hit high gear as many gold traders look forward to the results, seen as an appetizer before Bernanke’s speech tomorrow.
All eyes are on the FED now with the ECB looking to take the stage at the start on September.
Gold could have one of most famous rides in September and Bernanke’s Jackson Hole speech tomorrow will be very interesting but only the beginning of more EU and US monetary statements.