Crude Oil Price Drop May Stall Before US Midterm Elections

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CRUDE OIL & GOLD TALKING POINTS:

  • Crude oil prices drop to seven-month lows on oversupply worries
  • Gold prices pause to digest beneficial properties after Thursday’s explosive rally
  • US midterm elections might assist US Dollar, damage commodity costs

Crude oil costs fell for a fifth consecutive day on Friday as international oversupply fears remained on the forefront. News that the US has granted eight international locations sanctions waivers, permitting them to proceed imports from Iran, appeared to be the catalyst du jour. Gold costs marked time within the meantime, digesting the prior day’s aggressive rally.

CRUDE OIL, GOLD MAY FALL ON US MIDTERM ELECTIONS OUTCOME

Looking forward, a light-weight day on the financial calendar appears unlikely to drive significant pattern growth as all eyes flip to the end result of US midterm elections on Tuesday. The baseline state of affairs envisions divided Congress after the votes are counted, with Democrats reclaiming a majority within the House of Representatives. That may boost the US Dollar, weighing on commodity costs by extension.

See our information to be taught in regards to the long-term forces driving crude oil prices!

GOLD TECHNICAL ANALYSIS

Gold costs have stalled following a retest of resistance within the 1235.24-41.64 space. A break above this barrier exposes the 1260.80-66.44 area subsequent. Alternatively, a reversal downward that produces a every day shut beneath help within the 1211.05-14.30 band opens the door for a check of the 1180.86-87.83 zone.

Gold price chart - daily

CRUDE OIL TECHNICAL ANALYSIS

Crude oil costs sank to a seven-month low on their technique to help at 61.84. A every day shut beneath this barrier clears the way in which for a problem of the $60/bbl determine. Alternatively, a reversal again above support-turned-resistance within the 64.26-45 space targets a falling pattern line at 65.73.

Crude oil price chart - daily

Turning to the weekly chart, costs are making headway on a longer-term reversal, as expected. From this angle, the highlight now appears to be on the $59/bbl determine. This is the location of a help line set from 2016. A detailed beneath that appears more likely to pave the way in which for substantial additional weak point to observe.

Crude oil price chart - weekly

COMMODITY TRADING RESOURCES

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

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



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