Gold Prices May Continue to Rise After US Jobs Data

Talking Points:

  • Gold prices arise for a third day amid “Trump trade” unwinding
  • Crude oil prices erase intraday dump on EIA inventories report
  • Broadly in-line US jobs information might produce behind to visual flows

Gold prices rose as for a third uninterrupted day as a unwinding of a “Trump trade” resumed after a day’s charity of US mercantile information crossed a wires (as expected). The US Dollar resumed a pullback from 14-year highs and US Treasury bond yields declined in tandem, charity support to non-interest-bearing and anti-fiat assets.

Crude oil prices primarily fell alongside US share prices, benchmark borrowing costs and a greenback, mirroring a pattern seen progressing in a week that appears unchanging with profit-taking on themes widespread in a final weeks of 2016. The WTI agreement rebounded however as EIA register information showed stockpiles fell by 7.05 million barrels final week, commanding forecasts job for a 1.7mb pull and echoing API estimates.

December’s central US practice total are resolutely in a spotlight from here. An outcome broadly in line with expectations is doubtful to be game-changing for Fed rate travel speculation, where most depends on still-uncertain mercantile process (by officials’ possess admission). That means that absent a furious flaw from forecasts, a report’s recover might do small some-more besides clearing a trail for a “Trump trade” annulment to continue.

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GOLD TECHNICAL ANALYSISGold prices determined foothold above insurgency during 1166.51, a 23.6% Fibonacci retracement, confirming a mangle on a daily shutting basis. The subsequent upside separator is in a 1193.55-99.80 area (38.2% level, May 30 low), with a serve pull above that targeting a 50% Fib during 1215.40. Alternatively, a annulment behind next 1166.51 exposes a 14.6% Fib during 1149.85 anew.

Gold Prices May Continue to Rise After US Jobs Data

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are attempting to reconstruct upside movement after anticipating support above a $51/barrel figure. Near-term insurgency is during 54.03, a 14% Fibonacci expansion, with a mangle above that on a daily shutting basement exposing a 44.19-21 area (23.6% level, Jan 3 high). Alternatively, a pierce next resistance-turned-support during 51.64 exposes a 38.2% Fib retracementat 50.25.

Gold Prices May Continue to Rise After US Jobs Data

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

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