The U.S. Energy Information Administration (EIA) reported on Wednesday that crude inventories surged by 4.578 million barrels in the week ended September 24, following a decrease of 3.481 million barrels in the previous week. Economists had forecast a draw of 1.652 million barrels.

At the same time, gasoline stocks rose by 0.193 million barrels, while analysts had expected a gain of 1.400 million barrels. Distillate stocks increased 0.385 million barrels, while analysts had forecast a decline of 1.648 million barrels.

Meanwhile, oil production in the U.S. climbed 500,000 barrels a day to 11.100 million barrels a day.

U.S. crude oil imports averaged 6.6 million barrels per day last week, up by 87,000 barrels per day from the previous week.

FXStreet reports that Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that gold (XAU/USD) is grinding lower and sees support at $1722 as the last defence for the $1692 August low.

“Gold is grinding lower and will shortly encounter the 78.6% retracement at $1722. The new low has not been confirmed by the daily RSI and we may see some near-term consolidation.”

“Below $1722 support is found at $1679.80/$1677.83 and is reinforced by the $1670 June 2020 low. Below $1670 would target the 2018-2021 uptrend at $1600.”

“We have extensive resistance from $1795 to $1834 (55, 200-day moving averages and highs since July) and we look for rallies to struggle on moves into this band. The 55-week ma also is found at $1822.”