The Week In Hindsight; 17 Jan 2014
Gold snapped a three weak winning streak on Tuesday after failing to break through the $1255 price level. The precious metal had benefited from previous doubts over whether or not the Federal Reserve will go ahead with the planned taper of bond purchases at this month’s meeting.
This was until December retail sales figures trumped forecasts prompting a sell-off in gold and a rally in the US dollar.
SPOT GOLD HOURLY CHART
On the corporate earnings and base metals front, both BHP Billiton and Rio Tinto surpassed expectations due to increased levels of production and stronger than anticipated demand. Shares in both companies responded positively to the news, providing hope for other producers throughout the year ahead.
RIO TINTO AND BHP BILLITON (BLACK) HOURLY CHART
Bench mark oil prices appeared to have bottomed for the time being this week with strong support found for both Brent and WTI at $105 and $91 per barrel respectively. Continuing improvements in global growth expectations for 2014r, along with constrained supply in some cases, are the main drivers of oil prices at present.