Crude Oil Prices May Rise as Gold Falls, Both Approach Key Levels

Crude Oil Gold Talking Points:

  • Crude prices rose as a US pushed allies to cut Iran oil imports to zero
  • Gold competence tumble as trade fight worries boost a US Dollar on breakwater bids
  • The commodity and yellow steel are nearby pivotal levels on a daily chart

Find out what retail traders’ gold buy and sell decisions contend about a entrance cost trend!

Crude oil prices rose to their top given May 24th on Tuesday notwithstanding skeleton from Saudi Arabia to boost outlay to a record 10.8 million barrels per day. This followed a response from over a weekend where Saudi Energy Minister Khalid Al-Falih pronounced that a total OPEC+ oil travel will be closer to 1m b/d rather than +600k. The latter guess was a subsequent genuine value from final week’s entertainment of a commodity producing cartel.

Rather, oil prices were some-more meddlesome in developments out of a US. First, a US was reported pulling a allies to cut Iran oil imports to zero by Nov 4th. More intensity supply intrusion threats sent a commodity rallying. If that was not enough, API estimates forked to a larger-than-expected contraction in US wanton stockpiles of 9.23m barrels final week.

Meanwhile, gold prices declined on Tuesday mostly interjection to a rise in a US Dollar on protected breakwater bids. The changed steel is famous for a anti-fiat properties given that it has no compared yield, so it mostly moves inversely to a greenback. The US Dollar also managed to brush off worse-than-expected internal consumer certainty data.

Ahead, wanton oil will eye a EIA weekly register report. There, stockpiles are expected to agreement by 3 million barrels final week. A higher-than-expected rebate in supply (as mentioned earlier) competence serve supplement movement to oil’s ascent.

Gold prices on a other palm face US trade information and durable products orders, a kick there competence boost a greenback and so inversely impact a yellow metal. But a concentration will arguably be on trade fight fears that stands to accelerate a US Dollar in a identical proceed that we saw on Tuesday.

BACKGROUND: A Brief History of Trade Wars, 1900-Present

Gold Technical Analysis

Gold prices have been in a downtrend given Apr and a near-term descending support line seems to be doing a good pursuit during determining a descent. It competence not be most longer now until a yellow steel finds itself contrast a Dec 2017 low during 1,236. This competence be a box given a mangle subsequent a long-term rising trend line from 2016. Still, evident insurgency is during 1,267 followed by 1,277 as indicated on a Fibs below.

Gold Daily Chart

Crude Oil Technical Analysis

After a fake dermatitis subsequent a 2017 rising support line, wanton oil prices are once again on a arise as they proceed a May high during 72.87. From here, it contingency pass near-term insurgency during 70.88 that is a 50% Fibonacci prolongation before contrast that. Immediate support appears to be that trend line again and a mangle subsequent it leaves a 23.6% turn as a subsequent aim during 66.93.

Crude Oil Daily Chart

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— Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To hit Daniel, use a comments territory subsequent or @ddubrovskyFX on Twitter

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