Oil and Gold decline as risk recovers on abating tensions
Falling tensions, risk bounces back as gold and oil pullback from highs.
Overnight traders moved back into risk and out of the two leading markets since last Friday. Have markets priced in Friday’s airstrike and the weekends tensions between the US and Iran? For now, it looks as if markets have come to terms with the situation to a certain degree.
The JPY, Oil and Gold have been the big winners since Friday all three markets lost ground overnight. The majors all moved higher to the JPY, the GBP winning the day adding 1.14% the EUR at second gaining 0.82%. Gains were also seen to the USD, but the AUD failed to hold gains finishing falt. Sellers have not let up on the AUDUSD sending it 0.13% lower today.
Oil sellers got going late into the London session and this continued through the NY session price dropping 1.59% after buyers touched $64.53. Gold was another that suffered losing 1.40% from it’s daily high to finish 0.38% higher.
Stocks saw modest gains, U.S. indexes pulling back some of Friday’s losses. The Nasdaq led the pack adding 0.56%. European shares failed to recover, the DAX dropping 0.70% Today local and Asian stocks are trading mixed but the ASX200 has a 1.05% gain the Nikkei has added 1.08% helped by a weaker JPY.
Today’s video we run over the main moves from overnight and take a look at price scenarios we see in relation to the current pullbacks and fightbacks. The main focus being the possibility of developing lower highs.