Gold Prices Slide Amid Pause in Trump Trade Unwind

Talking Points:

  • Gold prices decrease amid a postponement in “Trump trade” unwinding
  • Kneejerk sensitivity risk high as markets import US mercantile outlook
  • Crude oil prices symbol time, demeanour to EIA information for instruction cues

Gold prices declined as a US Dollar corrected aloft after dropping to a seven-week low. The pierce seemed to be a broadly-based “off day” for a unwinding of a supposed “Trump trade”: a greenback rose alongside US Treasury bond yields and bonds advanced. Not surprisingly, a leg reduce for a yellow steel was a conflicting side of a equation.

From here, a still mercantile calendar will substantially have a markets rapt with Trump-watching as investors try to boundless where US mercantile process is heading. The trail of slightest insurgency seems gold-supportive as traders trim bearing determined after final year’s choosing though a wandering title that offers a glance of where a White House is steering might fast change a landscape.

Meanwhile, crude oil prices continued to step water, apparently unimpressed after API reported that inventories rose by 2.9 million barrels to symbol a largest build in 3 weeks. The spotlight now turns to a central EIA register flows report. Consensus forecasts call for a benefit of 1.5 million barrels. If a API guess proves prophetic and a incomparable boost is reported, offered vigour might nonetheless emerge.

What do sell traders’ buy/sell decisions contend about bullion and wanton oil cost trends? Find out here!

GOLD TECHNICAL ANALYSISGold prices put in a bearish Dark Cloud Cover candlestick pattern. Coupled with disastrous RSI divergence, a setup hints a pierce reduce might be brewing. Near-term support is during 1199.80, with a mangle next that on a daily shutting basement targeting a 14.6% Fibonacci enlargement during 1183.28. Alternatively, a pull above a 38.2% Fib retracement during 1219.20 exposes a 1248.98-50.65 area (50% level, Jun 24 low).

Gold Prices Slide Amid Pause in Trump Trade Unwind

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are imprinting time in informed domain though a outlines of a Head and Shoulders settlement continue to spirit that a tip is holding shape. A pierce next initial support during 52.44 paves a approach for a exam of a 50.25-69 area (38.2% Fibonacci retracement, Jan 10 low), with a daily tighten next that confirming a bearish setup. Alternatively, a pierce above a 23.6% Fib enlargement during 53.75 exposes a 55.21-65 segment (January 3 high, 38.2% expansion).

Gold Prices Slide Amid Pause in Trump Trade Unwind

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

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