Crude Oil Prices Extend Gains as G7 Grapples with Syria Crisis

Talking Points:

  • Crude oil prices extend gains as US hardens line on Syria
  • Gold prices symbol time as Yellen hews to process standing quo
  • Day 2 of G7 summit, API register total on daub ahead

Crude oil prices continued to pull ceiling as US Secretary of State Rex Tillerson took a worse line on a dispute in Syria during a assembly with his G7 counterparts. He pronounced a US will “[hold] to comment any and all who dedicate crimes opposite a innocents,” stoking fears of a deepening predicament that might interrupt supply flow.

The sit-down extends for another day and traders will substantially continue to guard rising explanation with good interest. Tillerson travels to Russia immediately afterward and worries about a outcome of a tactful showdown might keep prices elevated. APIinventory upsurge data is also on tap.

Meanwhile, gold prices noted time as Fed Chair Janet Yellen delicately side-stepped opportunities to chase status-quo process expectations in a closely-watched debate during a University of Michigan. From here, a peace in top-tier mercantile eventuality risk puts geopolitics front and center.

The yellow steel rallied as risk hatred swept a markets after final week’s warn US barb strike on Syria, melancholy Fed rate travel prospects. Signs of deepening predicament might import on view anew, creation for some-more of a same. Needless to say, de-escalation might put this energetic into reverse.

What will expostulate wanton oil and bullion prices in a subsequent 3 months? See a forecasts to find out!

GOLD TECHNICAL ANALYSISGold prices sojourn sealed in a operation next trend-defining insurgency in a 1263.87-65.66 area (February pitch high, trend line, 50% Fibonacci expansion). Negative RSI dissimilarity hints that upside movement is fading and a spin reduce might be ahead. A mangle next a 1241.20-49.01 segment (range floor, 38.2% Fib) exposes 1218.90, an rhythm indicate in play given mid-January. Alternatively, a pierce above insurgency targets a 61.8% turn during 1282.31.

Crude Oil Prices Extend Gains as G7 Grapples with Syria Crisis

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices continued to pull aloft as approaching carrying privileged insurgency during 52.04, a 38.2%Fibonacci expansion. From here, a daily tighten abovethe 50% levelat 53.57 targets a 55.10-21 area (January 3 high, 61.8% Fib). Alternatively, a annulment behind next 50.04 exposes a 23.6% enlargement during 50.14 anew.

Crude Oil Prices Extend Gains as G7 Grapples with Syria Crisis

Chart combined regulating TradingView

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

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