Gold Prices May Extend Gains After Trump Threatens North Korea

Talking Points:

  • Gold prices benefit after Trump threatens North Korea, falling bond yields
  • Crude oil prices still range-bound, looking to EIA information for instruction cues
  • What will expostulate longer-term oil and bullion trends? See a forecasts here

Gold prices are anticipating renewed support after fiery comments from US President Donald Trump lifted a ghost of fight with North Korea. Capital fled to a reserve of supervision bonds, falling yields and boosting a relations interest of non-interest-bearing resources including a yellow metal.

Looking ahead, a muted charity of scheduled US eventuality risk hints that Fed process conjecture will take a behind chair to risk trends once again. FTSE 100 and SP 500 futures are indicating decidedly lower, arguing for continued risk hatred that competence keep bullion marching upward.

Crude oil prices shrugged off API information display US inventories strew 7.84 million barrels final week. That dump is good in additional of a 2.37 million drawdown approaching to be suggested when a central EIA set of equivalent statistics prints on Wednesday.

The WTI benchmark drifted lower, that competence simulate beating in a deficiency of a understanding on incomparable outlay cuts during a meeting of OPEC-led producers. The grave proclamation of such an settle competence have been behind until a group’s assembly on Aug 21 however, that might explain indolent selling.

The formerly mentioned EIA news takes core theatre from here. An register outflow closer to API’s large guess might register as understanding though follow-through will count on either outlay enlargement outpaces a rebate in stockpiles.

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GOLD TECHNICAL ANALYSISGold prices are attempting to retrieve a foothold abovechart rhythm indicate insurgency during 1260.85. A mangle aloft reliable on a daily shutting basement opens a doorway for a retest of a Aug 1 high during 1274.11. Alternatively, a annulment subsequent a 23.6% Fibonacci enlargement during 1252.62 exposes a 38.2% turn during 1239.33.

Gold Prices May Extend Gains After Trump Threatens North Korea

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices continue to teeter in a informed operation subsequent a 61.8% Fibonacci retracementat 50.19. Initial support comes during 48.65, a 50% level, with daily tighten subsequent that exposing a 47.10-29 area (38.2% Fib, Jul 4 high, trend line). Alternatively, a pull above 50.19 sees a subsequent upside separator noted by a 76.4% turn during 52.11.

Gold Prices May Extend Gains After Trump Threatens North Korea

Chart combined regulating TradingView

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

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