Gold Prices Trade Just above $1,160 per Ounce
Gold prices declined for the fourth day in a row. This bearish sentiment and the strong US dollar will drive gold prices lower.
COMEX-traded gold futures contracts for June delivery settled at $1,186.50 per ounce on Wednesday, May 27, 2015. Gold prices declined for the fourth session.
WTI crude oil prices are declining for the third day in a row. The bearish sentiments could push oil to test the support of $55 per barrel.
Rising refinery utilization and declining US output will support crude oil prices. This is positive for crude oil prices.
NYMEX-traded WTI crude oil futures for July delivery dropped by 0.90% and closed at $57.51 per barrel on Wednesday, May 27, 2015.
During the 2015 Global Metals, Mining, and Steel Conference, Barrick’s co-president reiterated the company’s stance on restoring a strong balance sheet by reducing debt.
Barrick has formed a strategic partnership with Chinese mining company Zijin Mining Group. Under the new structure, Barrick and Zijin will jointly control Barrick Niugini.
Barrick Gold (ABX) announced on May 24 that it had reached an agreement to sell its Cowal mine to Evolution Mining.
In addition to decreasing production costs, Barrick Gold has set a target of reducing debt by $3 billion by the end of 2015.
The current momentum could push gold prices to the key support of $1,150 per ounce. Prices tested this level in March 2015.
June gold futures trading in COMEX fell by 1.42% and closed $1,187.60 per ounce on May 26, 2015. Gold prices fell due to weak demand and the strong US dollar.
The benchmark US Gulf Coast 3:2:1 crack spread fell last week, from $19.801 per barrel on May 15 to $18.435 per barrel on May 26.
An increase in diesel prices is positive for refiners such as Phillips 66 (PSX) and Marathon Petroleum (MPC), which produce diesel from crude oil.
This Monday, May 25, US regular gasoline prices were $2.774 per gallon. This was an increase of 1% from the previous Monday’s price of $2.744 per gallon.
July WTI crude oil futures contracts have been trading within a rectangular trading range pattern for a month. Oil prices are fluctuating between $58 and $61 per barrel.
The EIA (U.S. Energy Information Administration) will publish the weekly crude oil inventory report at 11 AM on Thursday, May 28, 2015.
July WTI crude oil futures contracts trading in NYMEX slumped by 2.83% and settled at $58.03 per barrel on Tuesday, May 26, 2015. Crude oil prices plunged.
June gold futures contracts have been trading in a range for the past two months. Gold prices have been fluctuating between $1,180 and $1,220 per ounce .
Gold had a mediocre performance in yesterday’s trade. Gold prices increased by 2.24% YTD—led by increased demand from India.
Increasing imports from Asia would drive crude oil prices higher. The key resistance is at $61 per barrel. Prices tested this level in May 2015.
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