Talking Points:
- Crude oil prices stall at 2.5-year highs before API, EIA releases
- Gold prices may pull back on upbeat remarks from Fed officials
- What is driving long-term crude oil price trends? Find out here
Benchmark commodity prices have made little progress since setting prominent highs mid last week. Crude oil prices will look to the weekly API inventories report as well as the short-term outlook report from the EIA for their next lead. Meanwhile, gold prices may face a bit of selling pressure if upbeat remarks from Fed officials highlight the disparity between officials’ rate hike outlook and that of the markets.
What do retail traders’ bets suggest about gold price trends? Find out here !
GOLD TECHNICAL ANALYSIS – Gold prices have stalled a bit after touching a four-month high last week. Negative RSI divergence warns that the pause may translate into a larger reversal lower as upside momentum fizzles. A reversal back belowthe 50% Fibonacci expansion at 1312.90 opens the door for another challenge of the 38.2% level at 1294.91. Alternatively, a breach of the 61.8% Fibat 1330.89 targets the 1353.15-57.50 area (76.4% Fib, September 8 high) next.
Chart created using TradingView
CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices are consolidating gains after hitting the highest level since May 2015. From here, a daily close above the 38.2% Fibonacci expansion at 62.31 exposes the 50% level 64.32. Alternatively, a reversal back below the 23.6% Fib at 59.83 paves the way for a retest of the 14.6% expansionat 58.30.
Chart created using TradingView
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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