- Gold prices set new 6-week high after Trump press conference
- Crude oil prices find de-facto strength as a US Dollar drops
- Even hawkish Fed-speak might destroy to mangle overnight dynamics
Gold prices continued to arise and crude oilprices followed as a press discussion with Donald Trump poured cold H2O on Fed rate travel speculation. The US President-elect did not offer most to markets emotional for sum about his on-coming mercantile process plans, that have been speculated to boost acceleration and force Janet Yellen and association in to a steeper tightening cycle.
Treasury bond yields fell alongside a US Dollar, boosting a interest of anti-fiat and non-interest-bearing resources including gold. The weaker greenback also offering a lift to a benchmark WTI agreement since it is labelled in terms of a US currency, even as EIA inventories information showed a most incomparable build (4.1m barrels) than economists projected (930.1k).
Fed-speak comes behind into a spotlight from here after as a peace in high-profile mercantile information continues. This time around, comments from incoming FOMC electorate Patrick Harker and Charles Evans – Presidents of a US executive bank’s Philadelphia and Chicago branches – are going to be in focus. Even a broadly hawkish tinge might tumble on deaf ears however, as we saw progressing in a week.
On balance, this might meant that dynamics determined overnight will find follow-through amid continued retracement of “Trump trade” moves. This might bode good for bullion and wanton oil prices alike, nonetheless a latter might find it harder to build poignant movement as risk ardour sours along with certainty in an aggressively hawkish Federal Reserve.
What do traders’ buy/sell decisions contend about bullion and wanton oil cost trends? Find out here!
GOLD TECHNICAL ANALYSIS – Gold prices are operative on a fourth uninterrupted advance, that would make for a longest winning strain in dual months. A daily tighten above a 1193.55-99.80 area (38.2% Fibonacci retracement, May 30 low) targets a 50% turn during 1215.40. Alternatively, a annulment subsequent a 23.6% Fib during 1166.51 exposes a 14.6% retracement during 1149.85.
CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices incited aloft after anticipating support above a $50/barrel figure though descending brief of overturning a new array of reduce highs and lows. From here, a daily tighten above a 14.6% Fibonacci enlargement during 52.59 exposes a 23.6% turn during 53.75. Alternatively, a annulment subsequent a 38.2% Fib retracement during 50.25 sees a subsequent downside separator during 48.72, a 50% threshold.
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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