Super Fitness Health BlogThe Gold Market Could See a Large Correction
The commodities markets continue to look mixed.
The US Energy Information Administration showed, in a recent report, total domestic gas inventories rose in recent trading activity by 50 billion cubic feet to 2.833 trillion cubic feet. Traders and analysts had expected a 49 bcf build.
Most traders viewed the build as slightly bearish, noting it was just above market expectations but well above the year-ago gain of 28 bcf and the five-year average of 43 bcf. While the gap versus a year earlier is still big, most traders expect it to shrink as late summer weather turns milder and slows demand. The gap peaked this year at 275 on June 10.
US crude oil stocks rose unexpectedly in recent CFD trading activity, while gasoline inventories fell more than analysts had expected, the US Energy Information Administration showed in a recent report.
Domestic crude stockpiles rose 4.23 million barrels to 353.98 million barrels. Analysts had forecast an 800,000-barrel drawdown on average.
Looking at the gold spreads market, maintaining an optimistic momentum in the previous week’s trading, the yellow metal continues to hit initial price targets.
The October gold futures contract stands just below $1,900 and according to City Index, “We’re not far from the all important $2,000 & if the commodity continues its positive momentum then it’s likely to go beyond the $2,000 mark but with the possibility of a robust correction along the way. This week may see a pull back however it will need to remain above $1,780 otherwise the pull back could well become a correction taking the commodity lower to $1,700 for price support”.
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