Gold Breaches $1300 Level despite Strong US Greenback Capping Momentum

The pressure on gold seems to be building both from a geopolitical standpoint as well as from the fact that the dollar continues to strengthen against a number of foreign currencies. Currently XAUUSD pair is looking to consolidate above $1300 price range before moving further up the chart however the increase in risk-aversion has put a dent on Yellow metals momentum creating high resistance around $1307 price range.

The crisis in Italy which has led to another possible election and decrease in Euro’s value caused a significant increase in demand for safe havens from investors who deal with Euro. Moving forward Investors are on the lookout for Non-Farm Payroll data from the US scheduled to release this Friday.

Investors are also watching the proceedings over US-North Korea summit as the recent news triggered the surge in safe haven investment, while positive outcome from summit could push US Greenback to new heights.

Silver continued to move flat on early Tuesday’s. The XAGUSD pair continues to move well within $16 price range and the pair seems to have consolidated around $16.40 to $16.52 price range. With no major demand or stimulus pushing safe-haven assets, silver is expected to continue moving range bound during this week’s trading session.

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Crude oil prices continued to decline on Tuesday. Since last Wednesday, Brent Crude price has dropped over 5%, while WTIUSD has dropped nearly 9% in value. While many fret over the decline in Oil price due to OPEC decision to increase output, some argue that this increase will only satisfy the supply demand and as such there shouldn’t be a significant change to Crude Oil’s momentum in the global market in long term. Even if the decision to increase production and supply, some analysts believe that Crude Oil price will remain well inside the range of $63 to $ 68 max if not back above the $70 price range as the trading session moves further this year.