Oil declined as the euro slumped to a two-year low, reducing investor appetite for raw materials, and on signals that the global economic recovery is faltering.
Futures dropped as much as 1.9 percent after the common currency depreciated to the lowest level since June 2010 against the dollar. World stock markets fell as South Korea lowered interest rates for the first time in more than three years and Australian payrolls were cut. The International Energy Agency forecast “muted” growth in oil demand in 2013.
The falling euro is the primary reason for oil’s drop today. A weaker currency is probably the only tool the Europeans can use in the short term to boost growth. The euro dropped as much as 0.6 percent to $1.2167 today, the lowest level since June 30, 2010. The Standard & Poor’s GSCI Index of 24 commodities decreased 0.9 percent. Nineteen of the raw materials on the index were lower.
Australian employers unexpectedly cut payrolls in June, and the jobless rate rose for a second month, to 5.2 percent from 5.1 percent, data from the statistics bureau in Sydney showed. South Korea reduced its benchmark seven-day repurchase rate by a quarter of a percentage point, highlighting concern that exports are threatened by Europe’s failure to resolve its debt crisis.
Oil consumption will increase by a “relatively muted” 1 million barrels a day, or 1.1 percent, to an average of 90.9 million in 2013, the Paris-based IEA said today in its first outlook for the coming year. Demand in emerging economies will surpass that of developed nations for the first time in 2013, the IEA forecasts.
The he August futures on U.S. light crude oil WTI (Light Sweet Crude Oil) on the NYMEX fell $ 0.62, and is now $ 85.19 a barrel.
August futures price for North Sea Brent crude oil mix fell 0.86$ to $ 99.80 a barrel on the ICE Futures Europe Exchange.

Gold fell 1 percent on Thursday after the minutes of the Federal Reserve's most recent meeting gave no indication that U.S. policymakers were gearing up for additional action to stimulate growth, lessening the chances of a boost for the bullion price. Wednesday's minutes showed the Fed was open to buying more Treasury bonds to stimulate the economy but that the recovery might need to weaken for a consensus to build.
Disappointment that the minutes did not point to greater appetite for QE, coupled with data showing the number of Americans filing new claims for unemployment benefits fell to the lowest in four years, lifted the dollar to two-year highs against the euro. The correlation between gold and the dollar index was around its most negative in two years.
The gold price has more than doubled in value since the Fed initiated its multi-trillion dollar bond-buying program, a tool known as quantitative easing, in late 2008 during the depths of the global financial crisis. The market can pretend that QE3 isn't important, but it is one of the fundamental factors that is supporting gold prices.
Gold has fallen in six out of the last 10 trading sessions, compared with seven daily declines in global equities.
August gold futures on the COMEX today declined by 10.9 and now stands at $ 1564.8 USD per ounce.

Resistance of 3:1610 (Jul 6 high)
Resistance of 2:1600 (Jul 10 high)
Resistance of 1:1583 (Jul 11 high)
Current Price: 1565.00
Support 1:1558 / 58 (session low, resistance line from May 16)
Support 2: 1548 (low of June)
Support 3: 1527 (low of May)

Resistance 3:91,70 (50,0% FIBO 106,10-77,20, Jun 29 high)
Resistance 2:88,70 (Jul 5 high)
Resistance 1:86,30 (Jul 10 high)
Current Price: 84.83
Support 1:83,40 (Jul 10 low)
Support 2:81,80 (Jul 2 low)
Support 3:77,20 (low of June)

Change % Change Last
Oil $84.01 +0.10 +0.12%
Gold $1,567.90 -11.90 -0.75%
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