Crude Oil Prices Eye Inventory Data, Gold May Extend Recovery

Talking Points:

  • Crude oil prices rise, editing after yesterday’s selloff
  • Gold prices benefit as FOMC mins hole rate travel outlook
  • ISM and ADP might see bullion arise serve as EIA boosts oil

Crude oil prices incited aloft in a pierce that seemed visual after yesterday’s pointy selloff. API information display inventories fell 7.43 million barrels final week substantially didn’t harm either, though most of a day’s allege had already occurred by a time a recover crossed a wires.

Gold prices pushed ceiling as expected following a recover of minutes from December’s FOMC meeting. Policymakers seemed distant reduction assured of a need for an assertive rate travel cycle than new marketplace moves implied, weighing on a US Dollar and stoking anti-fiat demand.

The steel might continue aloft as information form ISM and ADP cranky a wires. The dual reports are sloping to uncover that US pursuit origination and servicesector activity expansion slowed in December. The WTI agreement might further extend gains if central EIA inventories information sees a incomparable pull afterwards a 1.7mb dump expected.

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GOLD TECHNICAL ANALYSISGold prices demeanour staid to retest a $1200/oz figure following a mangle of insurgency during 1166.51, a 23.6% Fibonacci retracement. From here, a daily tighten above a 1193.55-99.80 area (38.2% level, May 30 low) exposes a 50% Fib during 1215.40. Alternatively, a spin behind next 1166.51 targets a 14.6% Fib during 1149.85.

Crude Oil Prices Eye Inventory Data, Gold May Extend Recovery

CRUDE OIL TECHNICAL ANALYSISCrude oil prices found support above a $51/barrel figure. A daily tighten next resistance-turned-support during 51.64 opens a doorway for a exam of a 38.2% Fibonacci retracementat 50.25. Alternatively, a pull behind above a 14.6% Fib during 53.31 clears a approach for a retest of a Jan 3 high during 55.21.

Crude Oil Prices Eye Inventory Data, Gold May Extend Recovery

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

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