The unrest going on in Syria and as well as in Egypt, where the military toppled the government caused the concerns over oil supply to increase that led the prices to rise sharply within a few days. The U.S crude oil moved above $103 level whereas, Brent crossed its $107 a barrel mark on Monday.
However, the prices fell down in later hours of trading yesterday as the investors booked their profits because the concerns over the oil supply in the Middle Eastern region eased a little bit. It was noted that the Sharara oilfield, which is one of the largest oilfields of Libya, would be brought back into operation based on the consensus reached with the armed group who closed it down in the previous month. Moreover, a pipeline would also be brought into action in a couple of days that leads from Iraq to the port of Ceyhan in Turkey.
Brent dropped by around 32 cents yesterday and is down to $107 a barrel, while U.S crude is moving around $103 a barrel after plunging by 14 cents on Monday.
Gold gains as USD weakens against Majors
After making a low of 1208 in the U.S session on Friday, gold recovered strongly on Monday and tested its resistance level of 1239 which was its previous support level. This sharp gain of 30 dollars was witnessed in the metal as the greenback lost against the major currencies amid the talks of the Greece bailout in the Eurogroup meetings. Chances are that Greece would get another bailout that would certainly help the Euro to gain against the U.S dollar, but the outlook of gold would remain bearish as the traders may enter the market with short positions from time to time.
Gold gained more on its technical move today in the Asian session and soared till the 1256 area which is considerably above its 200-EMA on 1-hourly chart. The next resistance level for gold is 1274 where sellers would love to enter again as it is the 100-EMA on its 4-hourly chart.
Silver followed Gold as Always
Silver made a fresh new low after dropping down severely on Friday after the U.S employment numbers, where it tested the level of 18.17; however, it bounced back up yesterday where it made a high of 19.41 and is currently hovering in the same area. Trading silver seems to be relatively easier now for the traders, as its move is based on the direction that gold takes. However, selling opportunity remains there provided that gold does not sustain above its technical resistance levels.