GOLD & CRUDE OIL TALKING POINTS:Gold costs rise as US Treasury yields dip, clearing chart resistanceBuoyant sentiment may eve
GOLD & CRUDE OIL TALKING POINTS:
- Gold costs rise as US Treasury yields dip, clearing chart resistance
- Buoyant sentiment may even see charges recuperate, undermine scope for beneficial properties
- Crude oil costs susceptible if EIA inventories information echoes API print
Gold costs continued to rise for a second day, edging as much as a two-week excessive. A downswing in Treasury yields appeared to drive the transfer upward, boosting the steel’s enchantment instead retailer of worth. The speed on the benchmark 10-year observe fell and the yield curve flattened. A discreate catalyst will not be readily obvious.
Wanting forward, a comparatively quiet day on the financial information entrance may give option to sentiment tendencies as the first driver of worth motion. Bellwether S&P 500 futures are pointing greater, signaling a risk-on tilt which may pull yields greater and weigh on bullion.
The end result of a 10-year US debt public sale could also be noteworthy too. An uptick in prevailing yields coupled with wholesome demand – echoing the obvious shift away from dovish extremes on Fed financial coverage bets not too long ago – may serve to compound draw back strain.
GOLD TECHNICAL ANALYSIS
Gold costs have managed to re-establish a foothold above former help within the 1848.66-63.27 space, seemingly opening the door for a push above the $1900/ouncesfigure to problem the 1911.44-28.82 zone. A each day shut again beneath 1848.66 might see a tun again beneath $1800/oz, focusing on the 1747.74-65.30 area.
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CRUDE OIL PRICES AT RISK AS EIA INVENTORY DATA APPROACHES
Crude oil costs are languishing in consolidation mode having briefly touched a nine-month excessive final Friday. The weekly EIA crude oil inventories report is within the highlight, with baseline forecasts pointing to a slim 849.3k-barrel drawdown.
A similar trade report from API printed yesterday projected a 1.14-million-barrel construct over the identical interval, setting the stage for a disappointment when official figures cross the wires. Which may apply some downward strain, although promoting could also be capped if broader danger sentiment holds up.
CRUDE OIL TECHNICAL ANALYSIS
Adverse RSI divergence suggests upward momentum could also be fading, which can set the stage for a pullback in crude oil costs. Sellers face a dense resistance-turned-support block, with a each day shut beneath 41.46 wanted to verify a break towards help close to $35/bbl. Resistance is clustered round $50/bbl.
Crude oil worth chart created utilizing TradingView
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— Written by Ilya Spivak, Head Strategist, APAC for DailyFX
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