- Gold prices penetrate as Fed upgrades 2017 rate travel projection
- Crude oil prices underneath glow as FOMC spurs US Dollar rally
- Commodities might face to deeper waste on US CPI report
Gold prices slumped as a Federal Reserve upgraded a opinion for a 2017 seductiveness rate travel path. Policymakers now design to lift a benchmark lending rate 3 times subsequent year, adult from a span of increases projected in September.
Chair Yellen did her pinnacle to play down a change, observant usually handful of FOMC officials holding into comment a rarely capricious effects of destiny mercantile process were obliged for a ceiling deposit in executive bank’s normal view. The markets paid small mind however.
Yields soared alongside a US Dollar, undermining direct for non-interest-bearing and anti-fiat assets, falling changed metals. Crude oil prices serve declined as a greenback’s gains practical de-facto offered vigour to a USD-denominated WTI benchmark.
Looking ahead, November’s US CPI report headlines a information docket. Expectations call for a baseline acceleration rate to arise to a 25-month high during 1.7 percent. An upbeat imitation in line with a new fibre of upside surprises might fuel serve steepening of a priced-in tightening path, punishing commodities.
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GOLD TECHNICAL ANALYSIS – Gold prices accelerated downward anew after a brief duration of consolidation, falling to a lowest turn in 10 months. Near-term support is now during 1130.18, a 38.2% Fibonacci expansion, with a mangle next that on a daily shutting basement targeting a 50% turn during 1112.37. Alternatively, a pierce behind above a 23.6% Fib during 1152.21 opens a doorway for a retest of a 14.6% enlargement during 1165.80.
CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices posted a largest decrease in dual weeks, retreating behind next a $51/bbl figure. From here, a daily tighten next a 38.2% Fibonacci retracement during 49.78 exposes a 50% turn during 48.33. Alternatively, a annulment behind above a 23.6% Fib during 51.58 targets a 14.6% retracement during 52.58.
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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