Gold Prices May Stall After Surging on FOMC Outcome

Talking Points:

  • Gold prices might scold reduce amid risk-on trade carrying surged after FOMC
  • Crude oil prices spin gain reports from attention heavyweights for guidance
  • Are commodity prices relating DailyFX forecasts so distant in Q3? Find out here

Gold prices surged in a arise of an FOMC proclamation that a markets interpreted as dovish. The US Dollar fell alongside Treasury bond yields after a process matter crossed a wires, boosting a relations seductiveness of non-interest-bearing and anti-fiat assets.

Looking ahead, a peace in top-tier news upsurge might see movement delayed until second-quarter US GDP total enter a design Friday. SP 500 futures are indicating carefully higher, so a bit of a visual pullback might be in a cards if seductiveness rates corner adult a bit in risk-on trade.

Crude oil prices noted time, indifferent as EIA inventory data showed a larger-than-expected drawdown. The total showed stockpiles shedding 7.21 million barrels final week since analysts approaching a 3.13 million outflow. The tame response substantially due to API telegraphing a vast drop yesterday.

Earnings reports form some of a appetite sector’s heading firms now enter a spotlight. ConocoPhilips, Valero and Marathon are among a firms due to news in a entrance hours. Traders will brush by a firms’ brazen superintendence statements to surprise supply/demand trend expectations.

Need assistance with your line trade strategy? Join a webinar to ask questions live!

GOLD TECHNICAL ANALYSISGold prices are contrast above draft rhythm indicate support during 1260.85, with a mangle aloft opening a doorway for a exam of a doorway for a exam of a 38.2% Fibonacci enlargement during 1271.20. Beyond that, a 1291.65-95.46 section (50% level, double top) comes into focus. Alternatively, a spin subsequent a 23.6% Fib during 1245.91 exposes a 14.6% enlargement during 1230.31 anew.

Gold Prices May Stall After Surging on FOMC Outcome

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices have stalled nearby insurgency during 48.65, a 50% Fibonacci retracement. A postulated pull above this separator sees a subsequent upside threshold during 50.19 (61.8% level, trend line). Alternatively, a annulment behind subsequent a 38.2% Fib during 47.10 exposes support during 45.32.

Gold Prices May Stall After Surging on FOMC Outcome

Chart combined regulating TradingView

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

To accept Ilya’s research directly around email, greatfully SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

About author