Crude Oil Prices Rise on Inventory Drop, Gold Eyes BOJ and ECB

Talking Points:

  • Crude oil prices arise on EIA register data, competence postponement to digest form here
  • Gold prices postponement to digest gains, demeanour to ECB and BOJ for instruction cues
  • Where will bullion and wanton oil prices be in 3 months? See a forecasts

Crude oil prices raced aloft after executive EIA register information suggested a distant incomparable outflow than expected. US stockpiles strew 4.73 million barrels compared with a 3.46 million pull approaching by a markets and a startle benefit foreshadowed in API figures for a same period.

A postponement to connect competence now be in a cards. The batch of top-tier eventuality risk has been tired for a week, withdrawal prices but an apparent catalyst. As ever, a markets’ strident concentration on tellurian oversupply means that wandering comments from officials in pivotal producing nations competence stoke kneejerk volatility.

Meanwhile, a peace in impending news-flow left gold prices in digestion mode, as expected. All eyes now spin to financial process announcements from a BOJ and a ECB, with investors introspective a interest of non-interest-bearing resources amid increasing conjecture that normalization is around a corner.

Japan’s executive bank seems doubtful to vigilance impulse withdrawal and may even dial adult dovish rhetoric lest rising yields derail a reflationary ambitions. Mario Draghi and association competence foreshadow serve tapering of QE item purchases, that competence import on a yellow metal.

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GOLD TECHNICAL ANALYSISGold prices paused to connect gains after clearing insurgency during 1239.60, a 38.2% Fibonacci retracement. From here, a daily tighten above a 50% levelat 1250.38 exposes a 61.8% Fib during 1261.16. Alternatively, a spin behind next 1239.60 paves a approach for a retest of a 23.6% retracement during 1226.26.

Crude Oil Prices Rise on Inventory Drop, Gold Eyes BOJ and ECB

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices narrowly breached insurgency during 47.10, a 38.2% Fibonacci retracement. The mangle appears to open a doorway for a exam of a 50% turn during 48.65, yet it bears mentioning that a Jul 4 pitch high during 47.29 continues to reason for now. A annulment behind next 47.10 and a descending pivot line during 46.63 exposes rhythm indicate supportat 45.32.

Crude Oil Prices Rise on Inventory Drop, Gold Eyes BOJ and ECB

Chart combined regulating TradingView

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

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