Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Gold Prices Attempt Bounce, Follow-Through Depends on US Data

Gold Prices Attempt Bounce, Follow-Through Depends on US Data

Talking Points:

  • Gold prices attempt recovery after suffering a nine-day losing streak
  • Crude oil prices stalling near $50/bbl figure as OPEC meeting looms
  • US PCE data in focus ahead amid swirling Fed rate hike speculation

Gold prices are attempting an intraday recovery alongside a pullback in the US Dollar in a move that seems to reflect moderating Fed rate hike bets. Follow-through is far from secure however as the Fed’s preferred PCE inflation gauge crosses the wires.

The core year-on-year inflation rate is expected to remain unchanged at 1.6 percent. A recent run of better-than-expected economic releases hints analysts’ models may be underestimating performance however, opening the door for an upside surprise. Such an outcome is likely to boost near-term tightening speculation, sending the greenback higher and pressuring the yellow metal.

The data’s implications for sentiment-linked crude oil prices is unclear considering the resilience of risk appetite in the face of the hawkish shift in the priced-in Fed policy outlook since the beginning of the month. S&P 500 futures are pointing higher, hinting at a risk-on mood that may bode well for the WTI contract. Still, as noted yesterday, pre-positioning for this week’s OPEC meeting may emerge as a headwind.

Are traders buying or selling gold? Find out here !

GOLD TECHNICAL ANALYSISGold prices are attempting to launch a rebound after posting the ninth consecutive daily loss. A push above channel floor support-turned-resistance at 1231.48 targets the 23.6% Fibonacci retracementat 1242.88. Alternatively, a drop through support at 1205.30, the 38.2% level, paves the way for a test of the 50% Fibat 1174.93.

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are locked in quiet consolidation near the $50/barrel figure but negative RSI divergence continues to hint a top may be taking shape. Near-term support is at 48.77, the 50%Fibonacci expansion, with a break below that exposing the 38.2%level at 47.41. Alternatively, a push above the 61.8% Fib at 50.13 targets the 76.4%expansion at 51.82.

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

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES