Will safe-havens continue gaining demand? How will the storm Harvey affect oil prices?Posted on Monday, September 4 2017 at 2:46 pm GMT+0000
Hurricane Harvey continues to affect US-Oil prices.
Oil prices continue to rise for the third consecutive day as Hurricane Harvey continues to affect US-Oil prices.
The storm caused a quarter of US oil production to be halted. It caused key refineries and other energy facilities in Texas to shut down, including the Colonial pipeline which is the country’s largest energy supply system, driving prices higher. Especially fuel prices, which have seen the largest rise since 2015.
On the other hand, oil prices also benefited from the dollar’s weakness.
Charts are revealing a bullish reversal pattern that could push prices towards $ 49 in the next few trading days.
Gold hit an eleven-month high.
Gold which is considered a safe investment in times of risk aversion hit an eleven-month high as geopolitical tensions heightened between the US and North Korea.
North Korea’s missile tests heightened political tensions, pushing investors away from risk assets resorting to alternative investments such as gold and the Japanese yen.
Alongside these political tensions, gold is benefiting from the dollar’s weakness, especially after weak labor market data at the end of last week.
Technically, gold has reached a strong resistance area of 1342 so we may see some downward correction towards 1327, but the return of tensions will push prices back towards 1350 with scope to retest the 1375 medium term high.