FXStreet reports that Axel Rudolph, Senior FICC Technical Analyst, notes that gold remains under pressure as XAU/USD flirts with the March low at $1676.80 a fall through which would eye the 50% retracement at $1616.18.

“Gold continues to slide and currently flirts with the early March low at $1676.80, a fall through which would have the 50 % retracement of the 2018-2021 advance at $1616.18 in its sights.” 

“Immediate downside pressure should remain in play while gold stays below the 2021 resistance line at $1730.57. Overall downside pressure will be felt while the price of gold remains below the November low, mid-March high and 55-day moving average at $1755.76/$1774.77.”

The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories fell by 0.876 million barrels in the week ended March 26, following a build of 1.912 million barrels in the previous week. Economists had forecast a gain of 0.107 million barrels.

At the same time, gasoline stocks decreased by 1.735 million barrels, while analysts had expected an advance of 0.730 million barrels. Distillate stocks jumped by 2.542 million barrels, while analysts had forecast an increase of 0.171 million barrels.

Meanwhile, oil production in the U.S. grew by 100,000 barrels a day to 11.100 million barrels a day.

U.S. crude oil imports averaged 6.1 million barrels per day last week, increased by 0.5 million barrels per day from the previous week.