Crude Oil Prices Stall as Gold Drops on Upbeat US Economic Data

Talking Points:

  • Crude oil prices omit understanding Iraq comments, EIA register data
  • Markets might be branch deaf to OPEC jaw-boning as pivotal assembly nears
  • Gold prices penetrate as US durables news drives hawkish Fed opinion shift

Crude oil prices drifted laterally notwithstanding clearly understanding news-flow entrance opposite a wires. First, Iraq’s Prime Minister Haider Al-Abadi pronounced his nation will attend in an OPEC prolongation cut deal, reversing prior final for an exemption. This might assistance mangle a deadlock in negotiations on outlay rebate quotas forward of a conglomeration assembly successive week that is meant to finalize a scheme’s doing details. Second, a weekly EIA register data set showed a drawdown of 1.26 million barrels, violence forecasts job for a 289.7k tub build.

The EIA news was closely foreshadowed by a API estimate a day earlier, that might have undermined a figures’ market-moving potential. As for a OPEC saga, jaw-boning might be losing a ability to pierce prices (as expected). The lead-up to September’s phenomenon of a outlay cut agreement was noted by frequently opposing remarks from stakeholders that fueled waver volatility. The successive duration forward of a Nov 30 assembly has been no opposite and markets might be branch a deaf ear to explanation until something discernible emerges. A hostility to take directional bets opposite a backdrop of fading liquidity forward of a US Thanksgiving holiday might have also played a part.

Gold prices slumped after October’s rough US Durable Goods Orders information crossed a wires. The news showed a benefit of 4.8 percent, a largest in a year. Economics were raised a distant some-more medium 1.7 percent increase. US front-end bond yields rose and a 12-month rate travel opinion pragmatic in Fed Funds futures steepened, hinting a outcome amplified a new hawkish change in US financial process bets following a US presidential election. This increased a US Dollar and undermined direct for non-interest-bearing and anti-fiat assets, weighing on changed metals.

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GOLD TECHNICAL ANALYSISGold prices posted a largest decrease in dual weeks, breaching a $1200/oz figure and attack a lowest turn in roughly 10 months. From here, a daily tighten next a 123.6% Fibonacci enlargement during 1171.83 targets a 138.2% turn during 1152.30. Alternatively, a miscarry above a 100% Fib during 1203.40 exposes a 76.4% enlargement during 1234.97.

Crude Oil Prices Stall as Gold Drops on Upbeat US Economic Data

CRUDE OIL TECHNICAL ANALYSISCrude oil continue to step H2O after rising a miscarry from support nearby a $43/bbl figure, as expected. A daily tighten above a 50% Fibonacci enlargement during 48.55 exposes a 61.8% turn during 50.05. Alternatively, a annulment next a 38.2% Fib during 47.05 targets resistance-turned-support during 45.92, a Nov 9 high.

Crude Oil Prices Stall as Gold Drops on Upbeat US Economic Data

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

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