Commodities Week Ahead: Gold, Oil Vulnerable On Dollar Surge, New COVID Curbs – Investing.com

  • Date: 09-Aug-2021
  • Source: Investing.com
  • Sector:Oil & Gas
  • Country:Middle East
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Commodities Week Ahead: Gold, Oil Vulnerable On Dollar Surge, New COVID Curbs – Investing.com

The surging on expectations of a Federal Reserve taper of its long-running stimulus and COVID travel curbs out of China are resulting in a double whammy for commodities as the week begins, with gold and oil looking the most . 

At the time of writing, already had a rollercoaster day, with the front-month futures contract on COMEX falling briefly to under $1,680 an ounce in Asian morning trade, before pulling back to around $1,740 by noon. The rebound aside, gold was still down 1.4% by noon in Singapore or midnight in New York.

Monday’s break beneath the $1,700 threshold could entertain gold bears into taking another stab at the sub-$1,680 levels, gold chartist Anil Panchal wrote in a blog post on FX Street. 

But if gold continues to recover, then the progressive levels will be $1,790, followed by $1,804 and $1,815, Panchal said.

He added:



“While US dollar consolidation and recovery in the market’s risk appetite seems to have triggered the gold price rebound, the bears remain hopeful amid the Fed’s tapering concerns and COVID woes.”



Since January, gold has been on a tough ride that began in August last year—when it came off record highs