Gold Prices Rise as Soft US Data Cools Fed Rate Hike Bets

Talking Points:

  • Gold prices benefit after downbeat US information weighs on Fed rate travel outlook
  • Crude oil prices arise on Nigeria disruption, EIA drilling news now on tap
  • See a forecaststo learn what will expostulate wanton oil and bullion trends in Q3

Gold prices soared after a disappointing turn of US mercantile data cooled Fed rate travel speculation, pulling a US Dollar reduce alongside front-end Treasury yields (as expected). Not surprisingly, that increasing a interest of anti-fiat and non-interest-bearing resources including a yellow metal.

From here, a peace in top-tier scheduled eventuality risk might put risk ardour trends in control of cost action. A risk-on mood might see yields rising, spiteful gold. Souring marketplace view might broach a conflicting results. A transparent directional lead from US and European index futures is absent for now however.

Crude oil prices rose after Shell announced force majeure on Nigerian Bonny Light class exports. The supply intrusion might play into OPEC’s hands: a cartel’s production-cut efforts have been bedeviled by rising prolongation from Nigeria and Libya, member states that are nonetheless free from outlay quotas.

The spotlight now turns to a monthly EIA Drilling Productivity report. Markets will demeanour to a information to see a border to that pitch US supply expansion can keep prices capped, undermining OPEC-led efforts to expostulate them upward.

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GOLD TECHNICAL ANALYSISGold prices pennyless above channel insurgency defining a down trend given early June. From here, a subsequent covering of insurgency comes in during 1239.60 (trend line support-turned-resistance, 38.2% Fibonacci retracement). A daily tighten above that opens a doorway for a exam of a 50% turn during 1250.38. Alternatively, a annulment behind next a 23.6% Fib during 1226.26 targets a teenager draft focus during 1219.35, followed by a Jul 10 low during 1204.70.

Gold Prices Rise as Soft US Data Cools Fed Rate Hike Bets

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are behind to exam insurgency during 47.10, a 38.2% Fibonacci retracement, with a mangle above that reliable on a daily shutting basement exposing a 50% turn during 48.65. Alternatively, a annulment next draft rhythm indicate supportat 45.32 paves a approach for another exam of a May 5 lowat 43.79.

Gold Prices Rise as Soft US Data Cools Fed Rate Hike Bets

Chart combined regulating TradingView

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

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