COMMODITIES: Crude Falls on US-Iran Deal Hopes, Precious Metals Decline
Jun-09 18:29
- Crude oil has fallen sharply on Tuesday as hopes around a US-Iran deal have risen again amid reports that the US has been sent a new draft agreement and that Hezbollah could agree to a comprehensive ceasefire.
- WTI Jul 26 is down by 3.1% at $88.4/bbl.
- Sky News Arabia reported that the draft agreement has been sent to the American side for its review, with confirmation that the draft is preliminarily acceptable to the American administration.
- However, crude bounced off session lows after President Trump posted on Truth Social to say he would respond to the Iranian downing of a US helicopter, threatening to raise tensions.
- While it may contradict Trump’s statements earlier of progress to a deal, the US may think it can take some form of limited action without completely derailing the talks.
- From a technical perspective, the trend condition in WTI futures remains bullish and recent weakness appears corrective.
- The contract has traded through a key area of support at $90.51, the 50-day EMA. A clear breach of this would highlight a top and the start of a stronger correction, opening $77.22, the Apr 17 low.
- Meanwhile, precious metals have also pulled back today, with spot gold down by 1.4% at $4,269/oz and silver declining by 4.0% to $65.5/oz.
- A bear theme in gold remains intact, with scope seen for an extension towards the next key support at $4,099.2, the Mar 23 low.
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