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
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Crude Oil, Gold Prices May See Kneejerk Volatility in Thin Trade

Crude Oil, Gold Prices May See Kneejerk Volatility in Thin Trade

Talking Points:

  • Gold prices oscillate in a familiar range above $1100/oz
  • Crude oil prices dither after showing bearish chart setup
  • Holiday liquidity drain may boost kneejerk volatility risk

Crude oil and gold prices made little headway despite an economic calendar loaded with US event risk as markets would down ahead of the holiday weekend. The centrality of a still-uncertain fiscal policy outlook for shaping Fed rate hike bets probably played a role as well.

FOMC officials have repeatedly said that next year’s tightening trajectory will be heavily dependent on the growth and inflation implications of the platform put forward by President-elect Trump. With that in mind, revised third-quarter GDP data and a roundup of activity indicators for November probably proved to be too dated to generate a meaningful reaction.

From here, another dollop of US news-flow seems unlikely to awaken markets as year-end hibernation deepens. It ought to be remembered that thin liquidity can amplify knee-jerk volatility if stray headline risk spooks investors. With that in mind, it is seems prudent not to presume that standstill is assured and proceed with caution until participation levels rebuild in January.

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

GOLD TECHNICAL ANALYSISGold prices continue to mark time above the $1100/oz figure. A daily close below the 38.2% Fibonacci expansionat 1118.98 paves the way for a challenge of the 50% level at 1097.71. Alternatively, a move back above the 23.6% Fib at 1145.30 clears a path to retest the 14.6% expansion at 1161.52.

CRUDE OIL TECHNICAL ANALYSISThe appearance of a bearish Dark Cloud Cover candlestick pattern suggests crude oil prices may be carving out a top. Breaking below horizontal pivot support at 51.56 on a daily closing basis opens the door for a test of the 38.2% Fibonacci retracement at 49.78. Alternatively, a push above the 54.63-55.11 area (38.2% Fin expansion, trend line) sees the next upside barrier at 56.08, the 50% threshold.

--- Written by Ilya Spivak, Currency Strategist for

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.