Crude Oil Prices Stand during Attention as Saudi, Russia Leaders Meet

CRUDE OIL GOLD TALKING POINTS:

  • Crude oil prices eye Saudi, Russia leaders’ World Cupmeeting
  • Gold prices seesaw, conduct benefit notwithstanding hawkish FOMC tone
  • Dovish ECB process preference competence relate as US Dollar strength

Crude oil prices shot aloft after EIA register upsurge information showed US stockpiles strew 4.14 million barrels final week. That surfaced forecasts job for a some-more medium 1.09 million tub outflow and an API projection signaling a slight build.

Goldprices poetry notwithstanding a transparent hawkish change in brazen superintendence from a Federal Reserve. The steel primarily fell as a US Dollar rallied, though an about-face annulment shortly followed as pre-positioning for the ECB rate decision pushed the bellwether EUR/USD sell rate upward.

Comments from ECB officials forward of today’s assembly – particularly those from arch economist Peter Praet – suggested a concrete contention of a plan on QE item purchases would be had. The markets seemed to appreciate that to meant that they will soon be phased out.

OIL EYES SAUDI, RUSSIAN LEADERS’ MEETING

From here, soundbites from a assembly between Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putinare in focus. They will plead corner skeleton to pull for scaling behind a OPEC+ outlay cut intrigue on a sidelines of a World Cup compare between their countries’ teams.

The dual leaders wish to boost outlay to equivalent smoothness disruptions from Iran and Venezuela, that a IEA has pronounced could derail as most as 30 percent of supply. They face antithesis from other tip producers however, that competence make for a quarrelsome assembly when OPEC+ officials accumulate in Vienna subsequent week.

DOVISH ECB MIGHT ECHO AS GOLD WEAKNESS

As for gold, a knock-on effects of a ECB process call competence sojourn a pushing catalyst. Mario Draghi and association competence penetrate EUR/USD if negligence expansion and a disinflationary effects of a stronger Euro enthuse a check in impulse withdrawal. Follow-on US Dollar strength competence import on a yellow metal.

See a beam to learn about a long-term army pushing wanton oil prices!

GOLD TECHNICAL ANALYSIS

Gold prices remain stranded during support running them aloft given Dec 2016. Its reduce firm is now during 1295.45, with a mangle subsequent that primarily exposing a May 21 low during 1282.27. Alternatively, a move above a 1302.97-07.32 area a top firm of trend support (1313.28), followed by an rhythm indicate during 1323.60.

Gold cost draft - daily

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices are attempting a liberation from trend support set from Jun 2017, entering a 66.22-67.36 overload area again. A daily tighten above a top ascendancy exposes a 68.64-69.53 segment next. Alternatively, a crack of trend support during 65.21 primarily targets a Apr 6 low 61.84.

Crude oil cost draft - daily

COMMODITY TRADING RESOURCES

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

To hit Ilya, use a comments territory subsequent or @IlyaSpivak on Twitter

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