Gold Prices Eye US Tax Reform as Crude Oil Weighs Supply Trends

Talking Points:

  • Crude oil prices demeanour to EIA, JODI information to surprise tellurian supply/demand trends
  • Gold prices competence tumble on US taxation cuts opinion though follow-through competence infer lacking
  • What do sell traders’ bets spirit about commodity cost trends? Find out here

Commodity prices were little-changed Friday, oscillating in informed domain as traders eaten a preceding week’s developments. Crude oil prices are now looking to a EIA drilling information as good as JODI statistics on tellurian outlay and trade trends as markets continue to import either OPEC-led prolongation cuts will be sufficient to equivalent strong US production.

Meanwhile, gold prices are expected to concentration on US taxation cut legislation. Last-minute equine trade seemed to broach adequate votes to pass a Republican-led devise on Friday and a opinion competence occur as shortly as today. Successful adoption competence boost risk ardour and import on a yellow steel as bond yields drop, though follow-through competence infer muted if a bid is as entirely labelled in as it seems.

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GOLD TECHNICAL ANALYSISGold prices are consolidating final week’s pointy recovery. A daily tighten above a 38.2% Fibonacci retracement during 1260.38 targets a 50% turn during 1267.81. Alternatively, a pierce behind next a 23.6% Fib during 1251.18 exposes a Dec 12 low during 1236.32 anew.

Gold Prices Eye US Tax Reform as Crude Oil Weighs Supply Trends

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices continue to snippet out a Triangle draft pattern, that carries bullish delay in this scenario, if confirmed. A daily tighten above a Triangle tip (58.41) exposes a 23.6% Fibonacci enlargement during 59.83. Alternatively, a pierce next a pattern’s building (56.26) targets a 23.6% Fib retracement during 55.04.

Gold Prices Eye US Tax Reform as Crude Oil Weighs Supply Trends

Chart combined regulating TradingView

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

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