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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • $CAD & $MXN https://t.co/XZiWOgjVwR
  • CAD consumer confidence is up to 55.1 from 54.8 in the previous period $USDCAD
  • RT @VPatelFX: *AMLO: U.S. DECISION ON USMCA EXPECTED VERY SOON $MXN $CAD barely moves on this. Despite all the goodwill from Mexico to bud…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.90%, while traders in US 500 are at opposite extremes with 77.51%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/WpEi7e3ItW
  • A giant among policymakers. RIP. https://t.co/6raiEY0UDH
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: 0.28% Gold: 0.13% Oil - US Crude: -0.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/7uYjqzMesi
  • US Treasury Yields Update: 2-Year: 1.613% 3-Year: 1.633% 5-Year: 1.651% 7-Year: 1.758% 10-Year: 1.819% 30-Year: 2.257%
  • The late-week reversal in $EURUSD rates was spurred on by the November US jobs report – not necessarily a sustainable source of gains if US-China trade war headlines turn around again. Get your market update from @CVecchioFX here:https://t.co/RP1iZSgAga https://t.co/87gB1aDTMc
  • UK Election Poll (ICM/Reuters) - Conservatives 42% (unch) - Labour party 36% (+1)
  • Gold Price Holds Key Support Ahead of a Big Week for Global Markets https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2019/12/09/gold-price-holds-key-support-ahead-of-big-week-for-global-markets-xau-gld-js56.html $Gold https://t.co/AwP77mWUo3
Gold, Crude Oil Prices May Weaken Further on Hawkish Powell Speech

Gold, Crude Oil Prices May Weaken Further on Hawkish Powell Speech

2018-08-24 03:00:00
Ilya Spivak, Sr. Currency Strategist
Share:

GOLD & CRUDE OIL TALKING POINTS:

  • Commodity prices drop as US Dollar gains before Jackson Hole symposium
  • Gold prices retreat from resistance, crude oil rally stalls at former support
  • Hawkish Fed Chair Powell speech may keep raw materials under pressure

Commodity prices turned lower Thursday following the prior sessions’ gains as a recovery in the US Dollar pressured assets denominated in terms of the benchmark unit (as expected). Perennially anti-fiat gold prices appeared to reflect the currency’s recovery most directly while crude oil prices merely stalled having scored the largest daily gain in 2 months Wednesday.

GOLD, CRUDE OIL PRICES AT RISK ON HAWKISH POWELL SPEECH

The greenback advanced alongside two-year Treasury bond yields as the priced-in 2018 interest rate hike path implied in Fed Funds futures steepened. The move probably marks pre-positioning ahead of a much-anticipated speech from Fed Chair Jerome Powell at the central bank’s Economic Symposium in Jackson Hole, Wyoming on Friday.

The annual gathering is often used to unveil guidance signaling the direction of policy in the subsequent months. Mr Powell is likely to use the occasion to reiterate that the Fed intends to proceed with gradual interest rate hikes despite admonitions from President Donald Trump and potentially destabilizing spillover beyond US borders.

Familiar worries about trade wars, emerging market jitters and a likely growth slowdown in the second half of the year will probably re-emerge, echoing minutes from Augusts’ FOMC meeting published earlier this week. Articulating policymakers’ commitment to tightening despite these headwinds may continue to drive commodities lower as the Dollar extends gains.

Learn what other traders’ gold buy/sell decisions say about the price trend!

GOLD TECHNICAL ANALYSIS

Gold prices retreated from resistance defining the down trend started in mid-June. Support begins at 1160.37, the August 16 low, with a daily close below that targeting the 38.2% Fibonacci expansion at 1127.93. Alternatively, a rebound and breach above support-turned-resistance at 1204.59 targets the 1236.66-40.86 area.

Gold price chart - daily

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices stalled at support-turned-resistance guiding the uptrend from February. A daily close above its outer boundary – now at 68.90 – exposes the 69.89-70.41 area next. Alternatively, a push below support in the 63.96-64.26 zone opens the way for a challenge of swing low support at 61.84.

Crude oil price chart - daily

COMMODITY TRADING RESOURCES

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

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.