Gold up almost 2%: Gold posted its biggest single‐day rally since January 30th. The rally took hold after a disappointing ADP employment report suggested that the US economy may have slowed in the first quarter. US jobs data is expected to be released tomorrow despite markets shutting for the Good Friday holiday.
Oil rallies 5%: Oil closed significantly higher on Wednesday after data from the Energy Information Administration showed that a fall in rigs resulted in a drop in US production for the first time since December. The report also stated about an inventory build of 4.8mn barrels. In other news, negotiations between Iran and six world powers continued into Thursday.
Technical Strategy: Play the range Gold closed at US$1,203.9, above the 5 – DMA which is at US$1,194. However, RSI and Stochastic are overbought in short term charts and suggest that the upside is limited. We recommend playing the range of US$1,194– US$1,209. A break below US$1,194 can target US$1,186, while a break above US$1,209 can target US$1,215 (100 DMA).