Yesterday the price of oil dropped with about 4% following the comments from Steven Mnuchin (a US Treasury secretary) that some oil importers may be allowed the privilege to continue getting supplies from Iran. Saudi Arabia also hinted that it is going to increase the supply if shortages hit the market which also had an impact in the oil price.
As it was predicted yesterday, price decreased from 74.92 and reached 71.55 going past the support level at 72.73. Currently price is sitting at 72.19 as it is trying to recover from the 4% drop of yesterday. Following the downtrend, price may have a small retracement to create a new lower high then continue to fall towards the support level at 70.80.
When looking to short oil, it is better to wait for the pullback to take place which can also be taken as a sign that price will continue falling. Also take into consideration that later on today there will be news on the U.S crude oil stocks which might have an impact in the oil price.
The price of gold started off the week with a consolidation. Yesterday it only had a very small decrease of 0.1% falling from 1241.52 to 1240.24 where it is currently sitting. The gold price was affected by the fact that the Federal Reserve are expected to increase interest rates. Following the overall trend of price, after this small consolidation it might continue falling towards 1212.07 to form a new 2018 low.
It is better to wait for a proper price action signal before looking to place any short orders. Also be on the lookout of the news on U.S industrial production and Federal Reserve Chair which might have a very high impact on the dollar which will result in an impact on the gold price.
Yesterday the price of platinum had a small decrease of about 0.5%. Platinum price is also affected by the U.S activities so the fact that there is an interest rate increase might have also affected the platinum price. Price decreased from 826.3 to 822.3 where it is currently sitting. Price might continue dropping as it is in a downtrend which means it might end up falling towards the support level at 805.5.
Be in the lookout for price action signals before deciding to place any short orders. Also the U.S news on industrial production and Federal Reserve might also have an impact on the price of platinum.