Gold, Crude Oil Prices Stall as FOMC Rate Decision Looms
- Gold prices marking time at three-month range support
- Crude oil prices stall near $43/barrel figure once again
- Directional conviction unlikely before FOMC outcome
Gold prices continued to tread water near the $1300/oz figure at the start of the trading week. A lull in top-tier news-flow ahead of the on-coming FOMC monetary policy announcement appeared to undermine traders’ willingness to show directional conviction.
Crude oil prices saw plenty of intraday volatility but ultimately settled little-changed at familiar support near the $43/barrel threshold. Comments from Venezuelan President Maduro saying OPEC is close to an output deal offered early while concerns about Libyan shipments fizzled as a tanker returned to Ras Lanuf.
Muted activity seems likely to persist in the near term. OPEC-related headlines and a bit of relevant US economic data – Augusts’ Housing Starts and Building Permits figures – may generate some intraday activity. Follow-through may be too much to ask for ahead of Wednesday’s tectonic event risk however.
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GOLD TECHNICAL ANALYSIS – Gold prices are marking time near support in the 1303.62-08.00 area (May 2 high, 38.2% Fibonacci retracement). A daily close below this barrier paves the way for a test of the 50% level at 1287.29. Alternatively, a reversal above the 23.6% Fib at 1333.62 exposes falling trend line resistance at 1347.98.
CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices continue to hover near support in the 42.73-43.02 area (50% Fibonacci expansion, September 1 low). Breaking this threshold on a daily closing basis exposes the 61.8% level at 41.26. Alternatively, a move above the 38.2% Fib at 44.20 sees the next upside barrier at 46.02, the 23.6% expansion.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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