Crude Oil Prices Mark Longest Winning Streak in Two Months
- Crude oil prices rise for sixth day as EIA reports inventory drop
- Gold prices consolidate following the largest drop in 15 months
- Commodities may stall as markets look ahead to US jobs report
Crude oil prices continued to rise as EIA inventory data showed a 2.98 million barrel draw-down last week, echoing clues offered in previously released API figures. Economists were expecting a 1.5 million barrel build before the official report crossed the wires. Gold prices were broadly locked in congestion mode after yesterday’s sharp decline but sellers ultimately scored a narrow victory as Deutsche Bank shares continued to rise, undermining alternative store-of-value demand for the yellow metal.
Looking ahead, a relatively quiet day on the economic data front may make for a consolidative tone as markets look on toward Friday’s high-profile release of September’s US Employment report. Consensus forecasts suggest the economy added 170k jobs last month, up from 151k in August, while the unemployment rate remains at 4.9 percent. The on-going Deutsche Bank saga remains a source of potential knee-jerk volatility however.
What do crude oil and gold price patterns say about on-coming trends? Find out here!
GOLD TECHNICAL ANALYSIS – Gold prices paused to consolidate after suffering the largest drop in 15 months. A sustained break below the 61.8% Fibonacci retracement at 1266.58 sees the next downside barrier at 1240.96, the 76.4% level. Alternatively, a move back above the 50% Fib at 1287.29 expsoes the 1303.62-1308.00 area (May 2 high, 38.2% retracement).
CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices continued to push higher after clearing Augusts’ swing top, posting a sixth consecutive gain. From here, a daily close above the 76.4% Fibonacci expansion at 50.20 exposes the June 9 high at 51.64. Alternatively, a turn below the 61.8% level at 48.77 targets the 50% Fib at 47.61.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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