Gold Prices Echo Externally Inspired US Dollar Volatility, RBA on Tap

GOLD CRUDE OIL TALKING POINTS:

  • Gold prices relate externally-inspired US Dollar cost swings
  • Crude oil cost convene fizzles as Saudi exports strike one-year high
  • RBA competence indirectly change bullion as oil eyes EIA, API data

Gold prices declined as a US Dollar returned to a offensive, sapping a interest of anti-fiat alternatives succinct by a yellow metal. The greenback rose to a top turn in 13 months opposite an normal of a vital counterparts. Meanwhile, a sentiment-driven convene in crude oil prices was aborted as reports of flourishing Saudi exports crossed a wires.

RBA IMPACT MAY ECHO IN GOLD PRICES, OIL EYES EIA AND API DATA

Looking ahead, bullion prices competence continue to simulate externally-driven US Dollar volatility. A peace in top-tier mercantile news upsurge competence see a benchmark banking reflecting a knock-on effects of cost swings in some of a pivotal crosses. Yesterday, that was GBP/USD. Today it competence be AUD/USD if that span turns flighty following a RBA financial process announcement.

As for crude, it will distance adult a EIA Short-Term Energy Outlook news as good as a weekly inventory upsurge statistics from API. The former will assistance sign a border to that flourishing US outlay can equivalent reduced supply from Iran, where sanctions are being re-imposed as of today. The latter will be judged opposite expectations for a 1.79 million tub outflow to be reported in central DOE total on Wednesday.

Learn what other traders’ bullion buy/sell decisions contend about a cost trend!

GOLD TECHNICAL ANALYSIS

Gold prices recoiled from trend line resistance, falling behind toward a 17-month low set final week. A pierce belowthe 38.2% Fibonacci enlargement during 1197.94 sees a subsequent downside separator during 1186.42, a 50% level. Alternatively, a daily tighten above trend insurgency – now during 1212.14 – primarily targets former support during 1236.66.

Gold Prices Echo Externally Inspired US Dollar Volatility, RBA on Tap

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices sojourn sealed in a operation above trend support set from early February. From here, a daily tighten above a 23.6% Fibonacci enlargement during 70.99 targets a 38.2% turn during 73.49. Alternatively, a crack next a outdoor covering of trend support – now during 66.77 – exposes a 63.96-64.26 area.

Gold Prices Echo Externally Inspired US Dollar Volatility, RBA on Tap

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

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