Oil Topped Above $70 | Gold's Price Dances On The Dollar Index Move


Hedge funds and money managers have trimmed their long position
Traders have pushed the oil price higher due to the geopolitical concerns




Traders are taking every opportunity  to buy the dollar index, the index has made its strongest level for the year today and we believe that the trend would still continue. This has an impact on the price of the gold. The US NFP number released on Friday was largely short of expectation, especially the wage growth print. It was completely rotten. As we said on Friday, that no matter how you have look at the US NFP number, the message was that it is a feeble number. What changed the sentiment again for the dollar index was the speeches of the Federal Reserve Bank member who clearly said they are an open  mind when it comes to the topic of interest rate hike. 
 
Investors have still focused on the factors which are positive;  the headline employment number. These factors are keeping the dollar rally going which is pushing the gold price lower.  Hedge funds and money managers have trimmed their long position and if this trend continues, it is likely that we may see the gold price breaking the 1300 mark
 
Having said all this, we have started a very important week and some major news are due this week and they have potential to support the gold price. Trump’s decision on Iran, US and China trade deal are just few of them.
 
 
Traders have pushed the oil price higher due to the geopolitical concerns and the price has topped the $70 level for the first time since November 2014. President Trump is going to make a decision on Iranian nuclear deal this week and if he decides that he is going to walk away from the deal, we could see the oil price soaring even further. Iran is playing a major in global oil production and since 2016 after the sanctions were lifted, and if the US walks away from the deal, it would disturb the global supply and demand equation. We already know that the crisis over in Venezuela has halved its oil production and this is mainly because industry in Venezuela didn’t not keep up the pace with technology 
 



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