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Gold eases as equities, oil jump; trend still bullish

The price of gold is easing back at the time of this writing as safe haven assets take a back seat with stocks rallying and the dollar rebounding slightly. Other commodities were mostly higher, with crude oil extending its advance for the third day after a surprise drawdown in US crude stocks and another fall in production further boosted expectations of a tighter oil market later in the year. Despite today’s weakness tough, gold is still holding up relatively well following its upsurge in the first quarter of this year. The metal could benefit if the equity markets start to pullback once again, as has been the trend in recent days, or if the dollar weakens once more, which is certainly possible given the lack of any fresh stimulus behind today’s USD rally. Furthermore, the oil market rally could provide support for commodities across the board, from which both gold and silver could benefit. It is also not unheard of for both gold and equities to rise in tandem. So just because it is not rising now, it doesn’t mean the outlook for gold has turned bearish – not yet, anyway.

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