Gold failed to retest $1000oz, Market Sentiment favors Crude oil prices higher

Gold prices soars to $990.2 then fall to $978 level, Crude oil prices closed at $68.58 as driven by encouraging economic data from the US , Euro zone and china. Copper rallied as good economic figures boost Market fundamental.

Gold contract surged to as high as $990 before pull back on Monday. Inverse relationship with USD boosted the precious Metal. Silver prices failed to reach $16 level settle at 15.74 silver price has gained 39% this year .ETF demand for Gold shows signs of coming back. Major Bullion holding in SPDR Gold Trust increased to 1134.04 MT. yesterday.

Crude oil prices started month with strength , Crude futures added 3.4% to 68.58 as driven by economic data from the US , Euro zone and china. Currently trading at $68, near term bullishness remain will be intact.

While Improvement in economy drives crude oil prices further, which rally could tamper economic recovery. IEA head Nobuo Tanaka warned that 'if current oil prices move up very fast in a spike, then it could have an impact on economic recovery'.

Following strong PMI in china and Europe , US Manfacturing data rose to 42.8 In May , which is Better than Market expectation .It’s the highest level since last sept. Copper rallied by improvement in Economic data which attracted Investor and trader to stay long ahead. Nickel also followed by copper which driven by market sentiment.

Trading level for the day !

Today we see pull back in Both metals as technical indicators show they are in over bought zone after days of rises. However we expect rallied should resume after consolidation and the dollar
continue to sink deeper.

We expect Gold to trade in the range of $ 965 – 990 level , Silver would see good momentum trading level likely to achieve $16 .

We remain bullish on crude oil could follow further rally above $68.8 level breached 70.

Yesterday our call attempted that copper could see good rally , it happen fantastic move on upside which mostly driven by positive Economic numbers , we still remain on positive side for Copper and Nickel ,perfect combination for base metals to follow further good momentum rally .

Happy Trading !