Gold Prices Soften While Fed Officials Hard-Sell Rate Hike Hopes
- Gold prices boomerang from two-month trend resistance
- Crude oil prices extend convene on EIA register data
- Fed officials’ comments in concentration into a week-end
Gold prices languished in digestion mode amid a peace in Fed-linked eventuality risk yesterday, as expected. Comments from Boston and Dallas Fed Presidents Eric Rosengren and Robert Kaplan might rekindle sensitivity as traders catch a final pieces of superintendence before a pre-FOMC assembly trance duration that starts on Tuesday. Hawkish overtones in line with new remarks from other US executive bank officials might boost rate travel speculation, boosting a US Dollar and weighing on a yellow metal.
Crude oil prices continued to pull aloft as a central set of EIA inventories news showed stockpiles dropped by a whopping 14.5 million barrels, an outcome that stands in sheer contrariety with expectations job for a 631k-barrel build. The outcome was foreshadowed by an estimate from API yesterday. A slack in oil-specific news upsurge puts prices during a forgiveness of outmost factor, with a impact of Fed-speak on a arena of a greenback backing adult as an critical consideration. Headline risk associated to a arriving OPEC assembly remains a intensity source of volatility as well.
GOLD TECHNICAL ANALYSIS – Gold prices corrected kindly reduce after contrast trend line insurgency set from early July. Near-term support is during 1333.62, a 23.6% Fibonacci retracement, with pull subsequent that targeting a 1303.62-08.00 area (May 2 high, 38.2% level). Alternatively, a crack of trend line insurgency (now during 1351.35) on a daily shutting basement exposes a 1367.15-69.41 section (double top, 38.2% Fib expansion).
CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices modernized to a two-week high carrying set a bottom as expected after a coming of a bullish Piercing Line candlestick pattern. Near-term insurgency is now during 47.92, a 50%Fibonacci expansion, with a daily tighten above that targeting a 48.97-49.07 area (August 22 high, 61.8% level). Alternatively, a annulment behind subsequent a 38.2% Fib during 46.76 sees a subsequent downside separator during 45.33, a 23.6%expansion.
Courtesy: Ilya Spivak
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