Oil Rises Above $50

Gold declined on Tuesday, as traders turned cautious after the yellow metal failed to manage a recent high, though it held near its highest level in two weeks after the Fed further dampened speculation about an imminent US rate hike.

U.S. Federal Reserve Chair Janet Yellen on Monday provided a broadly optimistic assessment of the U.S. economic outlook and said interest rate hikes were coming, but traders focused on her lack of guidance about the timing of such an increase.

Gold settled above $1,240, thanks to soft USD. From a technical point of view, the precious metal could trade above $1,240 and re-test $1,250.

U.S. dollar index fell by 20 pips and traded at 93.84 levels.

Oil prices traded above $50 on Tuesday, the highest level in eight-month, on worries about the global supply deficit from attacks on Nigeria's oil industry.

GBP surged vs. USD and traded at $1.47, as “Bro” campaign pushed the pound up. A separate online survey by TNS for the Telegraph showed 48% for Staying in EU against 47% in favor of leaving. On the other hand, GBP could decline to $1.45 as a reflection of the fears surrounding the impending Brexit vote.

EUR traded in a limited range at $1.1350 in the absence of any major economic data. From a technical point of view, Fiber could re-test $1.13 during the course of the say.

Dollar gave up gains against Japanese Yen in Tuesday’s session and could return to 108 levels during today’s trading session.

The most important economic events:

  • NZD Reserve Bank of New Zealand Rate Decision (JUN 9): (GMT 23:00) Important – Forecast (2.25%) – Previous (2.25%).

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

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