Crude Oil and Gold Price Moves May Hinge on US, Japan Trade Talks

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CRUDE OIL & GOLD TALKING POINTS:

  • Crude oil worth bounce fizzles amid rising market turmoil
  • Gold prices torn as yields decline, US Dollar finds haven bid
  • US, Japan commerce talks could trump IEA report and US CPI knowledge

Crude oil costs tried a tepid restoration yesterday following the prior session’s brutal selloff. The transfer larger was swiftly aborted nevertheless as worrying geopolitical information move – notably from Russia and Turkey – triggered a selloff in rising market belongings and broadly soured buyers’ temper. The sentiment-sensitive WTI benchmark retreated from intraday highs to shut with a slender loss.

Gold worth motion was likewise muddled by the bloodletting within the EM house. Haven-seeking flows buoyed the US Dollar alongside Treasury bonds, miserable yields. That put the yellow steel’s position as baseline anti-fiat various at odds with its character as non-interest-bearing various. Not surprisingly, that translated into inconclusive efficiency (though sellers narrowly prevailed by the each day shut).

US, JAPAN TRADE TALKS MAY TRUMP IEA REPORT AND CPI DATA

Looking forward, the month-to-month IEA Oil Market Report could assist form bodily move expectations. Crude costs could edge up if it echoes an EIA prognosis printed earlier within the week that envisioned a downshift in US output development coupled with a pickup in demand. Meanwhile, gold is eyeing US CPI knowledge. Anything wanting a wild deviation from forecasts appears unlikely to command attention nevertheless.

On stability, that in all probability places sentiment developments again into focus. Continued rising market turmoil is prone to proceed to cloud the panorama however information of a breakthrough in commerce talks between US and Japanese officers could tip the scales in favor of a barely “risk-on” bias. Earlier talks with the EU look like an apt template, with President Trump keen to surrender unpopular auto import tariffs for token concessions. In this state of affairs, a pickup in bond yields would possibly nudge gold decrease whereas crude oil tracks share costs upward.

See our information to study concerning the long-term forces driving crude oil prices!

GOLD TECHNICAL ANALYSIS

The formation of a bullish Piercing Line candlestick sample coupled with RSI divergence hints gold costs could also be bottoming. A break above vary ground support-turned-resistance at 1221.25 exposes the 1236.6-40.86 space. Near-term help stays at 1204.59, the August 3 low.

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices look susceptible to deeper losses after breaking pattern line help established early February. The subsequent layer of help is within the 63.96-64.26 space, with an extra transfer under that exposing 61.84. Near-term resistance is at 70.41, adopted by a minor barrier at 72.88 on the way in which as much as the 75.00-77.31 zone.

Crude Oil Price Chart - Daily

COMMODITY TRADING RESOURCES

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the feedback part under or @IlyaSpivak on Twitter



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