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Hansen: Why the price of crude and gold are yo-yoing

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The last two months have seen the price of WTI crude fluctuate. Saxo's Ole Hansen says there's support in the USD 58 a barrell area but that there are also positions up to USD 62. He explains that even though US inventories fell by more than expected this week, supply is still high. He discusses a July WTI crude futures option that expires on Wednesday.

Gold is also on a road to nowhere and is frustrating both the bulls and bears, says Hansen. He says XAUUSD has stayed below the 1200 mark for some time. Geopolitical events such as Greece could add support but at the moment it's not looking positive.

It's been a disappointing week for agriculture, grains and softs. The problem, says Ole, is that there is ample supply in the market. Although there is the threat of a devastating el Nino later this year, this over-supply is what's driving the market down. Ole looks at wheat,  and sugar in particular.