Gold Costs Up, Crude Oil Down with Shares AFter Fed Assembly

GOLD & CRUDE OIL TALKING POINTS:

• Gold costs up because the Fed recommits to ultra-loose coverage stance
• Crude oil costs down alongside shares as danger urge for food unravels
• S&P 500 futures sign risk-off pivot may discover follow-through

Gold costs rose because the Federal Reserve painted a bleak image of financial situations, promising to maintain financial coverage ultra-accommodative for the foreseeable future. That helped bolster the enchantment of anti-fiat alternate options epitomized by the yellow steel.

Curiously, the US Greenback is buying and selling increased towards this backdrop. Which will have little to do with the forex’s yield enchantment and extra with the markets’ disappointment within the Fed’s slow-moving strategy. Dithering on steps to develop help cooled danger urge for food, talking to USD’s safe-haven enchantment.

The chance-off tilt was on full show for cyclically-sensitive crude oil costs, which tracked shares downward within the aftermath of the Fed fee choice. Bellwether S&P 500 futures now level sharply decrease, signaling extra of the identical is probably going forward.

GOLD TECHNICAL ANALYSIS

Gold costs are edging towards the highest of the uneven vary encasing worth motion since mid-April. Its prime is marked at 1765.30, the Might 18 excessive, with an in depth above that seemingly wanted to revive upward momentum. Alternatively, a drop under help within the 1679.81-93.92 space could tag the 38.2% Fibonacci retracement at 1645.40 subsequent.

Gold worth chart created utilizing TradingView

CRUDE OIL TECHNICAL ANALYSIS

Crude oil costs could also be topping under resistance within the 42.40-43.88 space as unfavorable RSI divergence bolsters the formation of a bearish Darkish Cloud Cowl candlestick sample. Breaking help at under 34.78 appears to initially expose the 27.40-29.11 inflection zone. Alternatively, a transfer previous resistance could deliver on a problem of the $50/bbl determine.

Crude oil worth 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