Gold Prices Aim to Extend Gains But Follow-Through Suspect

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GOLD & CRUDE OIL TALKING POINTS:

  • Commodities rise as indicators of NAFTA breakthrough weigh on US Dollar
  • Crude oil, gold prices goal larger after near-term chart resistance break
  • US commerce and client sentiment figures could trace at commerce conflict affect

US Dollar weak point buoyed commodities for a second day. Gold costs rose because the buck’s decline buoyed anti-fiat options epitomized by the yellow steel. Meanwhile, crude oil costs discovered de-facto help as a result of costs are denominated in USD phrases on international markets.

The benchmark unit appeared to shed some haven-linked demand as threat urge for food firmed on indicators of progress in NAFTA renegotiation efforts. The US and Mexico have reportedly reached settlement. The highlight now turns to Canada, with Finance Minister Chrystia Freeland due in Washington Tuesday.

US DATA TO HINT AT TRADE WAR IMPACT, CANADA TO REJOIN NAFTA TALKS

If Ms Freeland indicators that her nation will assent to the settlement struck between Washington and Mexico, one other risk-on push could weaken the US unit additional and increase commodities. Finding lasting follow-through on such strikes would possibly show troublesome nevertheless contemplating the Fed stays probably the most hawkish amongst its G10 counterparts, making USD a pure beneficiary when sentiment corporations and traders’ focus turns to yields.

US trade balance and client confidence figures are in give attention to the information entrance. The commerce deficit is anticipated to widen whereas sentiment ticks decrease. Taken collectively, the outcomes could assist illustrate the affect of the Trump administration’s tariff hikes on the broader financial system, hinting at what they could imply for financial coverage and asset costs within the months forward.

The weekly set of API stock stream statistics can be due to cross the wires. It will probably be weighed up towards expectations projecting a 684ok barrel outflow from crude oil storage to be reported in official EIA figures due Wednesday. A smaller drawdown could weigh on costs whereas a bigger one would possibly assist lengthen latest good points.

Learn what other traders’ gold buy/sell decisions say in regards to the value pattern!

GOLD TECHNICAL ANALYSIS

Gold costs breached resistance within the 1204.59-08.72 space (August 3 low, 23.6% Fibonacci retracement) to expose the 1235.24-41.64 area (Dec’17 help, 38.2% degree). An extra push above sees the subsequent upside barrier within the 1260.80-66.44 zone (Oct’17 help, 50% Fib). Alternatively, a transfer again under 1204.59 targets the August 24 lowat 1183.28.

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices edged via resistance marked by the 23.6% Fibonacci growth at 68.49, opening the door for a problem of the 38.2% degree at 70.99. Extending larger past that targets the 0.72.88-73.02 space (May 22 excessive, 50% Fib). Alternatively, a reversal again under 68.49 – now recast as help – places rising pattern help within the 64.81-66.67 zone again in focus.

Gold Prices Aim to Extend Gains But Follow-Through Suspect

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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