Gold recovers on weaker USD, Crude Oil bounces on LTN, Goldman Sacks forecast
Gold futures on the COMEX Division of the New York Merc rose for the 3rd straight session Tuesday, as the USD dipped, and EuroZone debt talk fueled demand for safe-haven assets such as Gold. Silver and Platinum followed and did Crude Oil
The most active Gold contract for June delivery added 7.9, or 0.5% to 1,523.3 oz.
Meanwhile, the majority of commodities regained some strength, after LTN, and Goldman Sachs raised their price forecasts on Crude Oil, industrial metals and precious metals. In London, Brent Light Crude for July delivery gained, and last traded above 112 bbl.
The Dollar Index dropped Tuesday, boosting buying interest in USD-denominated commodities.
Silver for July delivery rose 1.224, or 3.5%, to 36.128 oz. Platinum for July delivery rose 6.6, or 0.4%, to 1762.5 oz.
LTN increased its price forecast on Brent Crude by 18% to 118 bbl, Morgan Stanley increased its forecast for Brent Crude this year by 20% to 120 bbl and JP Morgan by 24% for Y 2012 to 130 bbl.
All analysts cited compelling evidence the Global economy will bounce back from temporary setbacks.
On Tuesday, the Euro gained about 0.5% after a steep drop on the prior trading session. The USD fell about 0.4% against a basket of currencies.
Players still seem concerned about the European debt crisis, slowing US economic growth, and the demand from emerging markets, which resulted choppy session. The US benchmark seesawed between 96.61 and 100.09 bbl.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.