Commodity spotlight – Gold

Gold popped higher on Monday with prices towards $1329, thanks to a softening US Dollar.

While Dollar weakness could in the short term offer the yellow metal further support, gains are likely to be limited by rising expectations of higher US interest rates. Focusing purely on the technical picture, the yellow metal remains under pressure on the daily charts.

A failure of prices to keep above the $1324.15 level could inspire a decline towards $1300. Alternatively, if bulls are able to hold their ground above $1324.15, prices could venture towards $1340.

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The South African Rand dipped slightly lower against the Dollar, with the USDZAR up 0.09% following news that President Jacob Zuma has refused to step down. It now appears that the ANC Party will formally request for Zuma to step down from his position, but news that he is still refusing to do so has weakened the Rand very marginally in early trade.