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Talking Points:

  • Gold prices touch four-month high on rumor China souring on Treasuries
  • Crude oil prices drift as EIA inventory data proves timid vs API alternative
  • What do retail traders’ bets suggest about gold price trends? Find out here

Gold prices edged up as the US Dollar fell after officials from Chinawere said to be viewing Treasury bonds as less attractive in unsourced reports. Beijing has since denied the story and the yellow metal slumped back into familiar territory, but not before touching the highest level in four months.

Crude oil prices drifted sideways, unimpressed by the weekly set of EIA inventory flow data showing US stockpiles shed 4.95 million barrels last week. That was larger than the 3.4 million barrel draw expected by economists but far lower than the massive 11.2 million barrel outflow flagged by API yesterday.

From here, US PPI headlines an otherwise quiet data docket. The core wholesale inflation rate is seen inching up to 2.5 percent, the highest since February 2012. That may do little to inspire volatility absent a wild surprise however as markets look ahead to the more potent CPI measure as well as retail sales figures due Friday.

What are the forces driving long-term crude oil price trends? Find out here!

GOLD TECHNICAL ANALYSISGold prices remain locked within a narrow range above the $1300/oz figure. Negative RSI divergence still hints a turn lower may be ahead. A daily close below the 61.8% Fibonacci retracement as 1311.34 targets the 50% level at 1297.08. Alternatively, a move above the 76.4% Fib at 1328.98 exposes the September 8 high at 1357.50.

Gold Prices Touch 4-Month High on Rumor China Souring on US Debt

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices continued to edge toward resistanceat 64.32, the 50%Fibonacci expansion, with a daily close above that opening the door for a test of the 61.8% level at 66.33. Alternatively, a move back below the 38.2%Fibat 62.31 sees the next downside barrier at 59.83, the 23.6% expansion.

Gold Prices Touch 4-Month High on Rumor China Souring on US Debt

Chart created using TradingView

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

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