Never miss a story from Daniel Dubrovsky

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Daniel Dubrovsky

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points:

  • Crude oil and gold prices rose amidst increased Syria conflict threat on Wednesday
  • Attention now turns to the US response and the incoming monthly OPEC oil report
  • Both gold and crude oil charts show warning signs that prices may soon head lower

Find out what retail traders’ gold buy and sell decisions say about the coming price trend!

Crude oil prices rose more than two percent on Wednesday, climbing to the highest point since December 2014. The threat of a conflict between the US and Syria helped push prices higher despite EIA oil inventories increasing by the most since early March. Meanwhile, gold prices also rallied. However, some of the gains in the anti-fiat yellow metal were lost when the US Dollar rallied towards the end of the day.

We also had the second day of the International Energy Forum in New Delhi. There, OPEC’s Secretary General Mohammad Barkindo spoke and said that the group is confident that they “will get inventories to the 5-year average in 2018.” He added that the cartel sees compliance in March higher than in February.

Looking ahead, on Thursday OPEC will issue their monthly oil market report. Previously, the group had to reduce supply by more than anticipated thanks to a glut in non-OPEC production. Since Barkindo also mentioned that global inventories are about 42 million bbl above the 5-year average yesterday, perhaps additional adjustments could be in the cards. More cuts to the supply may boost oil prices.

In addition, keep an eye out for how the US chooses to respond to the Syria situation. President Donald Trump spoke to Defense Secretary Jim Mattis and they are still weighing options for military action. Both crude oil and gold prices could be left vulnerable to how the situation unfolds. If sentiment declines again and the US Dollar falls, gold prices may benefit.

Gold Technical Analysis

Gold prices are trying to make progress to the upside, however the commodity has failed to close above the resistance line of a descending channel. Wednesday’s high also came close to testing the January high of 1,366.13. Negative RSI divergence also hints that prices may soon fall. From here, near-term support is at 1,340.94 which has acted as resistance in the past as well. A push below that exposes 1,323.65 which was an area gold struggled to fall through in late March/early April.

Gold and Crude Oil Prices May Give Up Gains From Syria, OPEC Lift

Crude Oil Technical Analysis

Unlike gold, crude oil prices closed above key resistance. That being the January 25th high of 66.60. However, like gold, negative RSI divergence is also present hinting momentum to the upside is ebbing. In addition, oil has not cleared the 38.2% Fibonacci extension at 67.33. From here the next target would be the 50% midpoint at 70.23. On the other hand, near-term support could be the January 25th high followed by the 23.6% level at 63.74.

Gold and Crude Oil Prices May Give Up Gains From Syria, OPEC Lift

Commodity Trading Resources:

--- Written by Daniel Dubrovsky, Junior Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

To receive Daniel's analysis directly via email, please SIGN UP HERE