Gold Holds Ground

AUD/USD seeks support

The Australian dollar inches higher over accelerating inflation expectations. The selling pressure has eased after the pair cleared the support-turned-resistance at 0.6720. Then a pop above the April high of 0.6800 has prompted more sellers to cover their positions. A close back above 0.6820 would send the pair to 0.6920. The base of the latest momentum at 0.6750 is a fresh support as the aussie consolidates its latest gains. 0.6700 along the 20 and 30-day SMAs is an important support to keep the momentum current intact.

XAU/USD tests resistance

Gold weakens as easing US inflation raises hopes for a pause in the Fed’s rate hikes. On the daily chart, the price is seeking to consolidate its gains after a tentative close above August 2020’s peak of 2075. A shooting star pattern showed hesitation in keeping bids at the all-time high level. Zooming into the hourly chart, a drop below the first support of 2010 has dented the impetus, causing some short-term buyers to take profit. 1980 at the base of the recent rally is a critical floor. A close back above 2055 would resume the rally.

US Oil struggles to bounce

WTI crude slides as a surprise rise in US inventory raises concerns of soft demand. A bearish MA cross on the daily chart is a sign of strong selling interests as the price gave up its recent gains. A long candle wick below the daily support of 65.50 indicated a rejection of the downside after an oversold RSI triggered a ‘buy-the-dips’ behaviour. The supply zone around 75.50 is where the bears would sell into strength due to downward inertia. A fall below 71.00 would expose 65.50 once again, potentially extending losses to 60.00.

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