The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories plunged by 7.373 million barrels in the week ended July 31. Economists had forecast a decrease of 3.001 million barrels.

At the same time, gasoline stocks increased by 0.419 million barrels, while analysts had expected a decline of 0.170 million barrels. Distillate stocks climbed by 1.592 million barrels, while analysts had forecast a gain of 0.279 million barrels.

Meanwhile, oil production in the U.S. reduced by 100,000 barrels a day to 11.000 million barrels a day.

U.S. crude oil imports averaged 6.0 million barrels per day last week, increased by 0.9 million barrels per day from the previous week.

FXStreet notes that gold has broken above $2,000 and is trading as high as $2,035 but a temporary pullback is in the cards. Silver also continues its recent surge, as real yields dive deeper into negative territory. Both precious metals are set to consolidate around $1,900 and $23 respectively before moving to new highs, Bart Melek, head of commodity strategy at TD Securities briefs.

“Fed signaling that it is weighing the abandoning of preemptive rate moves to curb inflation has many worrying that the US central bank will allow inflation to move above the historic target of 2%, driving real rates even lower. Yield suppression could very well be a target, even as fiscal policy becomes more simulative.” 

“If the yield curve goes below zero, does the Fed then move the Fed funds subzero? This, plus the fact that gold has the highest convexity is perhaps why gold is rallying, despite breakevens falling today.” 

“The near-term threat is disinflation, and higher real yields. Consolidation lower is still in the cards, as this is very much a retail speculative frenzy, with CTAs and specs both shedding length recently. Before gold moves above $2,100/oz and silver into new cyclical highs, it is likely these metals consolidate their gains near $1,900/oz and $23/oz first.”

Gold: Further push higher to $2075/80 - Credit Suisse

FXStreet reports that gold extends its move to a new record high as the yellow metal has surged above the $2030 mark. Strategists at Credit Suisse look for a further push higher to the next flagged resistance at $2075/80, but then finally some consolidation. Weakness from here though, if indeed seen, will still be viewed as temporary and corrective. 

“Our ideal roadmap remains for a still further push higher as gold has broken the psychological $2000 barrier, what we see as its next tougher resistance test at Fibonacci projection resistance at $2075/80. Our bias remains to then look for this to cap at first and for finally a consolidation phase to unfold.”

“Big picture, a pause at $2075 (if indeed seen) will still be seen as temporary with an eventual break higher seeing resistance at $2175/80 next, then $2295/2300.”

“Support for a pullback moves to $1939, then $1915, a close below which would suggest a correction has already begun, with support next at $1820/00.”