The yellow metal thus fell by 2% to an intra-day low of $1,560.60 on the bid-side as the US dollar picked up some serious safe-haven-flight flavored steam and gained more than eight-tenths of a percent.
The tensions between Iran and the West have been easing as another meeting will take place tomorrow. As such, expect more market participants to pay attention to this week's round of oil inventory data and thus impact price direction.
The fundamentals of oil are becoming more bearish as the inventories continue to build around the globe. The IEA reported last week that OECD inventories are now above the five year average while crude oil inventories in the US are at the highest level going back to the early 90s.