Crude Oil Prices Near Monthly High Before OPEC Supply Cut

Talking Points:

  • Crude oil prices nearby monthly highs before OPEC outlay cut
  • Gold prices symbol time as news-flow pushing Fed bets dries up
  • Knee-jerk sensitivity stays a worry in illiquid holiday trade

Crude oil prices continued to float nearby Dec highs forward of doing of OPEC’s output cut scheme subsequent month. The cartel’s Secretary General Mohammed Barkindo pronounced a monitoring cabinet meant to make correspondence with a settle will assemble on Jan 13. Gold prices remained cramped to a slight operation amid a peace in news-flow pushing conjecture about Fed financial process for a year ahead.

Another still day on a European information front and a tiny assisting of US news-flow seem like mixture for continued standstill. As noted previously however, illiquidity can have a manly amplifying outcome on differently medium cost swings. This means that an astonishing title might expostulate poignant sensitivity in thin, holiday trade. Indeed, yesterday’s Euro and British Pound selloff seems to be a box in point.

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GOLD TECHNICAL ANALYSISGold prices continue to teeter in a now-familiar operation above a $1100/oz figure. The initial covering of support is during 1120.72, a 38.2% Fibonacci expansion, with a mangle subsequent that on a daily shutting basement paving a approach for a exam of a 50% turn during 1099.91. Alternatively, pull above a 23.6% Fib during 1146.47 sees a subsequent upside separator during 1162.35, a 14.6% expansion.

Crude Oil Prices Near Monthly High Before OPEC Supply Cut

CRUDE OIL TECHNICAL ANALYSISCrude oil prices continue to float nearby December’s pitch top. Near-term insurgency in a 54.66-55.15 area (38.2% Fibonacci expansion, trend line), with a mangle above that on a daily shutting basement exposing a 50% turn during 56.11. Alternatively, a annulment behind subsequent plane focus support during 51.91 opens a doorway for a plea of a 38.2% Fib retracement during 49.80.

Crude Oil Prices Near Monthly High Before OPEC Supply Cut

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

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