Market Analysis – Gold, USDCHF, Crude Oil

Wednesday’s session saw another drift higher in equities with volumes still in holiday mode and few major catalysts to drive market action.

There were some big moves in safe haven assets with USDCHF tanking and Gold breaking a key resistance level, a big build in inventories also saw Crude Oil take a tumble.

USDCHF

The Swiss Franc surged over 1% against the USD, one of its biggest session gains of 2023 and seeing USDCHF hit lows not seen since SNB intervention back in 2015.  Price action seemed to be more CHF strength rather the USD weakness as CHF handily outperformed all other G10 currencies.

USDCHF RSI reading also hit the most oversold level since the safe haven flows of the pandemic panic of March 2020.

XAUUSD – Gold

Safe haven flows also gave Gold a tailwind with XAUUSD breaching the major resistance at 2070 USD an ounce, which had held the Gold price in check for the last week. A weaker USD, falling yields also bolstering the precious metal. 2070 remains the key level for now, if the bulls can establish this level as support, another run higher to test the all-time highs could be on the cards.

USOUSD – Crude Oil

WTI Crude Oil started Wednesday’s session with a rally after further attacks on tankers in the Red Sea sparked supply concerns. The rally fizzled later in the session demand fears after the weekly API report showed an unexpected build in crude inventories.

USOUSD forming a “death cross” (where the 50-day SMA crosses below the 200 day SMA) for the first time since September 2022, last time We saw this a significant decline in Oil Prices took place.