Crude Oil Price Hit 4-Month High, Gold Drops on FOMC Outcome

Talking Points:

  • Crude oil prices strike 4-month high on OPEC outlay cuts, EIA data
  • Gold prices thrust as FOMC stands by 2017-18 rate travel outlook
  • A peace in top-tier eventuality risk competence interpret into near-term digestion

Crude oil prices pushed ceiling after a brief consolidative pause, attack a four-month high. The technical cabinet monitoring OPEC-led prolongation cuts pronounced corner correspondence purebred during an considerable 116 percent in Aug and Iraq hinted a serve 1 percent rebate in prolongation is being discussed (though Russia pushed behind a bit, observant no grave offer has been made).

EIA register statistics also helped. The news showed a bigger wanton oil storage build than markets were looking for though gasoline and essence stockpiles fell significantly some-more than expected. This hinted that hurricane-related enlightening ability intrusion was vanishing faster than many feared, definition that a unwinding of a bolt in tender product can embark with propensity comparatively sooner.

Gold prices plunged after a Federal Reserve opted to keep forecasts for a rate travel trail by 2018 unvaried from June’s assessment, as expected. A slight hillside of a 2019 projection seemed to be too apart to be bothersome. The US Dollar rose alongside Treasury bond yields, undermining a interest of anti-fiat and non-interest-bearing resources succinct by a yellow metal.

Looking ahead, a peace in top-tier scheduled eventuality risk competence make for a duration of digestion. That need not meant that follow-on moves from yesterday’s cost movement are unlikely, though movement competence delayed to some extent. The deficiency of an evident focal indicate competence also make markets quite headline-sensitive, elevating knee-jerk sensitivity risk.

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GOLD TECHNICAL ANALYSISGold prices accelerated lower, pressuring support in a 1295.46-99.25 area (38.2% Fibonacci retracement, double top). A daily tighten next that exposes a 50% spin during 1281.26. Alternatively, a pierce behind above a 23.6% Fib during 1321.51 targets a 14.6% retracement during 1335.24.

Crude Oil Price Hit 4-Month High, Gold Drops on FOMC Outcome

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices pushed past insurgency noted by a Aug 1 highat 50.40 to display a May 25 tip during 51.97. A serve pull over that targets a 53.74-54.48 area. Alternatively, a spin behind next 50.40 opens a doorway for a retest of a Sep 6 high during 49.49. Trend line resistance-turned-support follows during 48.96.

Crude Oil Price Hit 4-Month High, Gold Drops on FOMC Outcome

Chart combined regulating TradingView

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

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