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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
Gold Price Upswing May Precede FOMC Rate Decision

Gold Price Upswing May Precede FOMC Rate Decision

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Gold prices at standstill as markets look ahead to FOMC meeting
  • Profit-taking on short exposure may drive corrective gold bounce
  • Crude oil prices gain as OPEC looks for output cut participation

Gold prices are flat-lining absent fresh news-flow updating speculation about the Fed monetary policy outlook. Next week’s FOMC rate decision lines up as the next key inflection point. An upside correction may materialize amid profit-taking on short positions as traders entertain the possibility that the central bank envisions a shallower tightening path than what has been priced in after the US president election.

Crude oil prices turned higher, snapping a three-day losing streak, as traders looked ahead to a meeting of OPEC and non-OPEC producers over the weekend. The cartel aims to secure external participation in a last-minute output cut scheme agreed upon last week. Follow-through will probably have to wait for the meeting’s outcome to cross the wires however. Russia looks to be in while others like Mexico and Brazil passing.

See the schedule of upcoming webinars and join us LIVE to follow the financial markets!

GOLD TECHNICAL ANALYSISGold prices remain locked in a narrow range but positive RSI divergence continues to hint an on-coming bounce. Near-term resistance is at 1183.28, the 14.6% Fibonacci retracement, with a daily close above that exposing the 23.6% level at 1199.50. Alternatively, a drop below the 23.6% Fib expansion at 1158.15 targets the 38.2% threshold at 1133.83.

CRUDE OIL TECHNICAL ANALYSISCrude oil prices corrected higher after finding interim support below the $50/bbl having established a top as expected. A daily close above the 51.64-52.00 area (double top, 23.6% Fibonacci expansion) exposes the 38.2% level at 53.49. Alternatively, a reversal below the December 8 swing low at 49.60 targets the 38.2% Fib retracement at 48.49.

--- 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