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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Heads Up:🇯🇵 Industrial Production YoY Prel (SEP) due at 23:50 GMT (15min) Previous: -13.8% https://www.dailyfx.com/economic-calendar#2020-10-29
  • 🇯🇵 Unemployment Rate (SEP) Actual: 3.0% Expected: 3.1% Previous: 3.0% https://www.dailyfx.com/economic-calendar#2020-10-29
  • What is the US Dollar outlook based on retail positioning ahead of the November 3rd presidential election? EUR/USD may fall as AUD/USD rises. Which way could USD/CAD capitulate? Find out from @ddubrovskyFX here:https://t.co/BVoIcR9anM https://t.co/QW3h3nIYXX
  • Heads Up:🇯🇵 Unemployment Rate (SEP) due at 23:30 GMT (15min) Expected: 3.1% Previous: 3.0% https://www.dailyfx.com/economic-calendar#2020-10-29
  • - #Biden is leading in the polls but a last-minute surprise could be in the cards - #Covid-19 case spike, fiscal stalemate souring sentiment and derailing outlook - #AUDUSD puncturing support at 0.7018 may open the door to further declines https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/10/29/AUDUSD-Selloff-May-Deepen-With-Stalemate-on-Fiscal-Talks-Biden-Leads.html
  • The Dow Jones will look to earnings from Apple, which was once the largest component of the index. Get your #Dowjones market update from @PeterHanksFX here: https://t.co/X9sHddneM4 https://t.co/yhKKhjd7Kr
  • The Indian Rupee may weaken following a breakout higher in USD/INR. Despite rising global stock market volatility, the Nifty 50 has been holding its ground. Could it capitulate lower? Find out from @ddubrovskyFX here:https://t.co/BNJ5uTKz1A https://t.co/x0YxwlKWaR
  • Relief rally ahead for $AUDNZD? Bullish RSI divergence at key psychological support (1.0600) suggests a rebound back towards the 21-MA (1.0626) and 50-MA (1.0659) could be on the cards Conversely, a break below 1.0590 probably opens the door for further losses. $AUD $NZD https://t.co/1zUvYXyLBh
  • WTI Crude Oil fell to a fresh four-month-low this morning. This fresh low broke through range support that’s held for the better part of two months. Get your #crudeoil technical analysis from @JStanleyFX here: https://t.co/UMeWEIrTSh https://t.co/a3Ujc3Rf2z
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.02% 🇳🇿NZD: -0.16% 🇦🇺AUD: -0.25% 🇬🇧GBP: -0.42% 🇨🇭CHF: -0.59% 🇪🇺EUR: -0.62% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vspt9gv2qH
Gold Prices Struggle to Make Headway After Hitting 2-Week High

Gold Prices Struggle to Make Headway After Hitting 2-Week High

2017-05-16 09:40:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • Gold price rally fizzles following advance to two-week high
  • Crude oil prices extend gains on OPEC output cut extension
  • API inventory data, sentiment trends in the spotlight ahead

Gold prices attempted another spirited run upward but recoiled downward after rising to a two-week high, finishing yesterday’s session with only meager gains. The yellow metal’s swings played out inversely of similarly choppy moves in the US Dollar. Seesaw action seemed to reflect the absence of a clear-cut catalyst for trend development.

The landscape is unlikely clear up in the near term. Data on US housing starts, building permits and industrial production are due to cross the wires. The outcomes seem unlikely to offer lasting follow-through from price action considering the probability of a June Fed rate hike is already priced at nearly 98 percent. Absent a solid lead from sentiment trends, this may leave gold rudderless again.

Crude oil prices continued to push higher after Russia and Saudi Arabia signaled they favor extending and OPEC-led production cut scheme expiring mid-year through the first quarter of 2018. The world’s top-two suppliers still need to convince remaining countries participating in the current output cut regime to follow suit however. A meeting of the relevant parties is coming up next week.

In the meantime, the weekly API inventory flow report enters the spotlight. Official EIA data due the following day is expected to show stockpiles shed 2.5 million barrels last week. A leading API print that exceeds that forecast is likely to offer a prices a further boost. Needless to say, a smaller draw or an unexpected increase is likely to have the opposite effect.

What will drive gold and crude oil prices through mid-year? See our forecasts to find out!

GOLD TECHNICAL ANALYSISGold prices continue to probe higher after putting in a bullish Morning Star candlestick pattern, as expected. A daily close abovesupport-turned-resistance at 1241.50 targets the 14.6% Fibonacci expansion at 1258.62. Alternatively, a turn back below the chart inflection point at 1217.70 targets the 38.2% level at 1199.07.

Gold Prices Struggle to Make Headway After Hitting 2-Week High

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices narrowly edged above the 50% Fibonacci retracement at 48.77. From here, a daily close above trend line support-turned-resistance at 49.40 targets the 61.8% level at 49.94. Alternatively, a turn back below 48.77 exposes the 38.2% Fib at 47.59.

Gold Prices Struggle to Make Headway After Hitting 2-Week High

Chart created using TradingView

--- 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