Talking Points:
- 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.
Are retail traders buying or selling gold ahead of the FOMC rate decision? Find out here !
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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