Strong USD Pushes Gold Back Towards Its 7 Month Low
Nomsa Ndlovu | Jul 11, 2018 04:24AM ET
GOLD
On Monday the price of gold formed a new lower high after having been in a pullback. This lower high could have been seen as the first sigh that the retracement was coming to an end. Price has been decreasing since the beginning of the week and one of the reasons for the decrease is the fact that the dollar is gaining strength. Yesterday price decreased from 1258.67 to 1251.24, where it is currently sitting. Due to the strong dollar, the gold price might fall more towards the support level at 1242.73 and if it happens that it goes past its 7-month low, then price will continue falling towards the support level at 1212.02.
If one did not sell gold after the pin-bar that formed on Monday, then maybe they can wait for price to go past the support level and for it to show a price action signal before they can enter. Those who were able to catch it from the pin-bar can look to collect their profits as price reaches its 7-month low at 1242.73.
OIL
The price of oil has been consolidating around the 77.82 price level for some time now. Yesterday price was expected to increase towards the resistance level at 80.08, but instead it decreased after the U.S decided to extend the sanctions relief to some oil buyers of Iranian crude. Price decreased from 78.26 to 77.64, where it is currently sitting. If price continues falling and goes past the previous higher low, then chances are it will continue to fall towards the support level at 75.05. But if price decides to terrace then it will rise towards the resistance level at 80.08.
PLATINUM
After having been in a pull back from its 2 and a half years low, the price of platinum created a lower high on Monday. This could have been seen as the first signal that price might start falling again. Yesterday price decreased from 850.0 and it is currently sitting at 832.3. Price might continue falling towards the support level at 811.2 which means it will be falling back to its 2 and a half years low.
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COCOA
The price of cocoa has been consolidating between the resistance level 2550 and the support level 2351 for over a month now. Yesterday morning it looked like the bears were in control but the bulls gained more strength and price increased from 2432 to 2485, where it is currently sitting. This consolidation of price does not really give a clear direction as to where price is really headed to. But chances are it might fall again.
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