CRUDE OIL & GOLD TALKING POINTS:
- Commodity costs retreat as client confidence knowledge boosts US Dollar
- Crude oil prices stall above $68/bbl determine with EIA stock knowledge on faucet
- Gold prices might fall additional if US GDP replace retains Fed hikes in focus
Commodity costs continued to mirror swings within the US Dollar on Tuesday. Unlike the prior two periods nevertheless, this meant weak point because the Conference Board revealed impressively strong consumer confidence data that despatched the benchmark foreign money upward.
Gold costs suffered because the buck’s positive factors undermined the attraction of anti-fiat options epitomized by the yellow steel. Meanwhile, crude oil costs succumbed to de-facto promoting strain as a result of they’re denominated in USD phrases on international markets.
EIA INVENTORY DATA, US Q2 GDP UPDATE IN FOCUS
For oil, the highlight now turns to EIA stock move knowledge. Economists count on to see that crude storage shed 967ok barrels final week. An API estimate revealed yesterday projected a 38ok barrel improve. If as we speak’s report hews nearer to that, costs could also be pressured downward.
Updated second-quarter US GDP figures are additionally due. The annualized progress price is penciled in at 4 p.c, the strongest in 4 years (albeit a bit decrease than a previous estimate at 4.1 p.c). If that helps maintain Fed price hikes within the highlight, additional US Dollar positive factors might even see gold endure additional.
See our information to study concerning the long-term forces driving crude oil prices!
GOLD TECHNICAL ANALYSIS
Gold costs are hovering at counter-trend help guiding the upswing from mid-August lows. A every day shut under this barrier, now at 1196.01, initially exposes the August 24 low at 1183.28. Alternatively, a push above the August 28 excessive at 1214.30 targets the 1235.24-41.64 area (Dec’17 help, 38.2% Fibonacci retracement).
CRUDE OIL TECHNICAL ANALYSIS
Crude oil costs are digesting positive factors after clearing resistance at 68.49, the 23.6% Fibonacci growth. The subsequent upside barrier is marked by the 38.2% stage at 70.99, with a every day shut above that focusing on the 72.88-73.02 space (May 22 excessive, 50% Fib). Alternatively, a flip again under 68.49 eyes pattern line help within the 64.91-66.73 area.
COMMODITY TRADING RESOURCES
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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