Crude Oil Costs Might Rise If EU Summit Stokes Brexit Deal Hopes

CRUDE OIL & GOLD TALKING POINTS:

• Crude oil costs down with shares as Covid-19 upswell brings new lockdowns
• Gold costs strain vary ground as haven-seeking flows enhance the US Greenback
• EU leaders’ summit might buoy crude oil, gold if Brexit deal prospects brighten

Crude oil costs tracked decrease alongside shares as threat urge for food soured in Wall Road commerce. The pace-setting S&P 500 equities benchmark fell for a second consecutive day, struggling the biggest each day drawdown in three weeks. Gold costs adopted downward as liquidation impressed capital flows into the US Greenback, undermining the attraction of the perennial anti-fiat alterative.

A ratio monitoring the efficiency of the tech-heavy Nasdaq fairness index relative to the cycle-sensitive Dow Jones Industrial Common rose because these transfers performed out, talking to a rotation in favor of the so-called “lockdown commerce”. This flagged the current upswing in Covid-19 instances and renewed restrictions on financial exercise because the catalysts for the market’s dour temper.

CRUDE OIL PRICES MAY RISE IF EU LEADERS’ SUMMIT BUOYS MARKET MOOD

Trying forward, a gathering of the leaders of European Union member states for a digital summit might seize the highlight. The conclave is seen as a last-ditch alternative to nail down a Brexit take care of the UK such that there’s sufficient time for implementation earlier than the exhausting divorce deadline at year-end. Final week’s exit of two hardline Brexiteers from UK Prime Minister Boris Johnson’s cupboard have raised hopes for an accord.

If soundbites from the summit counsel that significant progress has lastly been made, the markets could have been spared a significant supply of hysteria. Which will brighten traders’ temper market-wide, echoing as supportive for sentiment-sensitive crude oil costs. Gold might discover a little bit of help as properly if the chipper temper weighs on haven-seeking USD demand. Positive factors is likely to be capped by a parallel rise in bond yields nonetheless.

CRUDE OIL TECHNICAL ANALYSIS

Crude oil costs are marking time at vary resistance within the 42.40-43.88 space. A pair of Taking pictures Star candlesticks (recorded on November 11 and 18) might converse to indecision, which could in flip set the stage for a pullback. Assist is within the 34.64-36.15 space, with a break under that focusing on the 27.40-30.73 area. Alternatively, a each day shut above resistance might then expose the $50/bbl determine.

Crude oil value chart created utilizing TradingView

GOLD TECHNICAL ANALYSIS

Gold costs are pressuring now-familiar vary help within the 1848.66-63.27 space as soon as once more. Breaking under this barrier on a each day closing foundation seems more likely to open the door for a decline under the $1800/ozfigure to problem former resistance within the 1747.74-65.30 zone. Alternatively, an upswing previous the 1911.44-28.82 inflection area in all probability targets the swing high at 1965.55.

Gold value chart created utilizing TradingView

COMMODITY TRADING RESOURCES

— Written by Ilya Spivak, Head APAC Strategist for DailyFX

To contact Ilya, use the feedback part under or @IlyaSpivak on Twitter