CRUDE OIL & GOLD TALKING POINTS:
- Crude oil, gold prices rise as Trump feedback harm US Dollar
- Commodities might retreat in pre-positioning for FOMC minutes
- API stock circulate report back to foreshadow official EIA statistics
A pullback within the US Dollar set the trajectory for key commodities on Monday. Crude oil and gold costs rose in tandem as jawboning from Donald Trump amplified the buck’s retreat, which has been underway since late final week against a backdrop of improving risk appetite.
The US president once more expressed displeasure with the Fed’s tightening efforts, saying he intends to “criticize” the central financial institution if it retains elevating charges. This adopted reviews that he instructed donors Powell is disappointing his hopes for a “cheap-money Fed chairman” at a gathering Friday.
COMMODITIES REBOUND MAY STALL, API DATA DUE
Looking forward, the rebound in commodities costs might stall amid pre-positioning for Wednesday’s launch of minutes from Augusts’ FOMC meeting, which produced a decidedly hawkish assertion. Bets on a equally assured tone within the Minutes doc may even see USD recuperate some misplaced floor.
On the info entrance, the weekly API stock circulate report is because of cross the wires. The end result might be judged relative to forecasts calling for a 1.08 million barrel drawdown to be reported in official EIA statistics set to cross the wires Wednesday.
See our information to be taught concerning the long-term forces driving crude oil prices!
GOLD TECHNICAL ANALYSIS
Gold costs continued to recuperate, with a each day shut above former assist at 1204.59 breaking the bounds of the near-term downtrend and opening the door for one more problem of the 1236.66-40.86 space. Near-term assist stays at 1160.37, the August 16 low.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil prices are nonetheless oscillating in acquainted territory above assist within the 63.96-64.26 space. A break under that on a each day closing foundation targets 61.84 subsequent. Alternatively, a transfer again above development line support-turned-resistance at 68.65 paves the best way for a retest of the 69.89-70.41 zone.
COMMODITY TRADING RESOURCES
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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