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Gold, Crude Oil Pressured by Rising Dollar

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Feb 4, 2010.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    Stronger U.S. economic reports drove traders out of risky assets, putting pressure on both gold and crude oil. April Gold surged overnight to $1126.40 before backing down. This price was inside of a retracement zone at $1120.50 to $1131.40. The stronger Dollar encouraged traders to dump higher risk assets which weakened precious metals. The charts indicate this market could break back to $1100.40 over the short-run.

    The stronger Dollar helped to put pressure on commodities including March Crude Oil. This morning, the U.S. Department of Energy reported that crude inventories rose 2.3 million barrels last week. This increase in supply put further pressure on crude oil. The short-term chart indicates a break to 75.29 to 74.63 is likely.

    The improvement in the U.S. economy helped to pressure Treasury futures. March Bonds broke sharply lower as the prospects for an interest rate hike rose following the release of a better than expected ADP Employment Report and a favorable ISM Non-Manufacturing Index report. Traders are now factoring in the possibility that Friday’s Employment Report will show a rise in jobs. The charts indicate a break to 116’06 is likely over the near term.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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