Gold Prices Rise as North Korea Tensions Keep Markets on Edge

Talking Points:

  • Gold prices arise as North Korea tensions spirit risk appetite
  • Hawkish comments from Fed’s Fischer might opening bullion gains
  • Crude oil prices demeanour to EIA outlay information for instruction clues

Gold prices rose as a forbidding mood prevailed in skinny holiday trade. Stocks in Japan – one of a few vital markets not sealed for a Easter Monday holiday – declined in a pierce that seemed related to geopolitical jitters after North Korea conducted a ballistic barb exam (albeit unsuccessfully).

Investors seem endangered about escalation after reports rising Friday pronounced a administration would adopt a process of “maximum vigour and engagement” in their proceed to family with Pyongyang. US Vice President Mike Pence is on a 10-day outing in a segment to, among other things, representation a new approach.

The US Dollar fell alongside benchmark US Treasury bond yields and a priced-in 2017 rate travel trail pragmatic in Fed Funds futures flattened. Not surprisingly, this helped a relations interest of anti-fiat and non-interest-bearing assets.

Scheduled comments from Fed Vice Chair Stanley Fischer are in concentration from here. Reaffirmation of a executive bank’s vigilant to continue tightening amid signs of a poignant slack in a initial entertain might import on a yellow metal, yet downward follow-through might be singular as domestic concerns persist.

Meanwhile, crude oil prices will demeanour to a monthly EIA Drilling Productivity news for instruction clues. Traders will demeanour to a request for clues about a border to that a miscarry in US outlay will equivalent ceiling cost vigour from an OPEC-led prolongation cut scheme.

What will expostulate bullion cost trends by mid-year? See a foresee to find out!

GOLD TECHNICAL ANALYSISGold prices continue to pull higher, with buyers environment their sights on a $1300/z figure. Breaking above a 1302.90-08.00 area (76.4% Fibonacci expansion, former support) on a daily shutting basement exposes a 100% levelat 1336.19. Alternatively, a pierce behind next a 61.8% Fib during 1282.31 targets a 1263.87-65.66 segment (50% expansion, Feb 27 high).

Gold Prices Rise as North Korea Tensions Keep Markets on Edge

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are watchful for uninformed catalysts after recoiling from a one-month high. Support is noted by a 38.2% Fibonacci expansionat 52.04, with a daily tighten next that targeting a 23.6% turn during 50.14. Alternatively, a pierce above a 50% Fibat 53.57 exposes a 55.10-21 area (January 3 high, 61.8% expansion).

Gold Prices Rise as North Korea Tensions Keep Markets on Edge

Chart combined regulating TradingView

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

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