Crude Oil, Gold Prices Reflect Market-Wide Focus on Jackson Hole

Talking Points:

• Crude oil prices edge up within familiar range despite soft EIA data
• Gold prices mark time in familiar territory before key Yellen speech
• Have a question about trading commodities? Join a Q&A webinar

Commodity prices struggled to find fuel for directional follow-through. Gold prices continued to mark time in familiar territory. Fed policy speculation is formative for the benchmark anti-fiat asset and traders seemed unwilling to commit one way or another ahead of a much-anticipated speech from Janet Yellen on Friday.

Crude oil prices edged up within the recently-prevailing congestion range even as EIA data showed smaller than expected raw material and gasoline inventory drawdowns. Distillate stocks also grew more than analysts projected. The response may reflect relief at outcomes in line with the API-established baseline.

Retail traders expect gold to rise. Find out here what that hints about actual on-coming price moves!

GOLD TECHNICAL ANALYSIS – Gold prices continue to mark time below resistance in the 1295.46-1300.46 area (double top, 38.2% Fibonacci expansion), though negative RSI divergence still hints that a turn lower may be forthcoming. A daily close below 1278.22 (23.6% Fib retracement, trend line) exposes the 38.2% level at 1264.23. Alternatively, a push through of resistance targets the 50% expansion at 1310.74.

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices are struggling to make lasting headway after a break of trend line support stalled above the $46/barrel figure. Breaking the 38.2% Fibonacci expansion at 46.62 on a daily closing basis paves the way for a test of the 50% level at 45.46. Alternatively, a move above support-turned-resistance at 48.76 (range floor, trend line) exposes the August 1 high at 50.40.

Chart created using TradingView

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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