Gold Prices May Finally Break Trend Support on Hawkish Fed

GOLD CRUDE OIL TALKING POINTS:

  • Gold prices exposed as a Fed dials adult hawkish rhetoric
  • Crude oil prices during risk on USD upswing, EIA register data
  • Key multi-year draft support levels competence finally be broken

Gold prices retreated as a US Dollar posted a largest boost in dual weeks, fluctuating a winning strain to a fourth uninterrupted day and undercutting a seductiveness of anti-fiat alternatives. An upshift in a priced-in 2019 seductiveness rate travel trail pragmatic in Fed Funds futures looks to have accounted for a move. In-line US CPI information upheld mostly unnoticed, as expected.

Crude oil prices edged down as a monthly news from OPEC flagged uncertainly about on-coming supply and direct dynamics while a EIA upgraded a foresee for US output. Meanwhile, unnamed sources claimed Russia wants to scale behind prolongation curbs to Oct 2016 levels. API also reported US inventories combined 833k barrels final week.

HAWKISH FED MAY HURT COMMODITY PRICES

Looking ahead, a FOMC financial process announcement is resolutely in focus. Leading consult information points to a high pickup in mercantile activity and accelerating acceleration given a Mar foresee update, that competence make for a hawkish tilt. That is approaching to bode ill for bullion prices as a US Dollar continues to impetus aloft while broader collateral flows pierce divided from non-interest-bearing assets.

The central set of EIA register upsurge statistics is also due. It is approaching to uncover that wanton stockpiles strew 1.09 million barrels final week. A imitation closer in line with a API projection competence vigour oil prices downward. A stronger greenback competence amplify any such pierce given a commodity is labelled in USD terms on tellurian markets.

See a beam to learn about a long-term army pushing wanton oil prices!

GOLD TECHNICAL ANALYSIS

Gold prices await explain during support set from Dec 2016, now during 1294.89. A relapse reliable on a daily shutting basement primarily exposes a May 21 low during 1282.27, followed by a 1260.80-66.44 area. Alternatively, a push above a 1302.97-07.32 area aims for a top covering of trend support (1312.82) and a draft rhythm indicate during 1323.60.

Gold cost draft - daily

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices are perplexing to solve a transparent directional disposition during support set from Jun 2017. A mangle of a outdoor layer, now during 65.12, opens a doorway for a exam of a Apr 6 low 61.84. Alternatively, a miscarry behind above insurgency in a 66.22-67.36 area targets a 68.64-69.53 segment next.

Crude oil cost draft - daily

COMMODITY TRADING RESOURCES

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

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