The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories fell by 5.889 million barrels in the week ended April 9, following a drop of 3.522 million barrels in the previous week. Economists had forecast a draw of 2.889 million barrels.

At the same time, gasoline stocks rose by 0.309 million barrels, while analysts had expected a build of 0.786 million barrels. Distillate stocks dropped by 2.083 million barrels, while analysts had forecast an advance of 0.971 million barrels.

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

U.S. crude oil imports averaged 5.9 million barrels per day last week, down by 411,000 barrels per day from the previous week.

FXStreet reports that Benjamin Wong, Strategist at DBS Bank, discusses XAU/USD prospects.

“Gold has developed a minor double bottom and if the pattern delivers, there remains a nudge higher. What’s more, 1671, which is the monthly Ichimoku chart’s kijun support is the level to make or break as gold continues to find its stability pulse.”

“Despite gold having marched higher from its recent 1677 lows, gold remains under the cosh as it stays under the price cloud (the default setting that gold retains the bearish trait of the decline from 2075 highs). That indicates technically gold maintains an underlying bearish trait that was unleashed last September on a crossover sell signal on a 1959 breakdown.”