Crude Oil Prices May Give Up OPEC-Linked Gains on Trade War Fears
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CRUDE OIL & GOLD TALKING POINTS:
- Crude oil prices rise as OPEC withholds output increase at weekend meeting
- Gold prices down as US, China trade war escalation sends US Dollar higher
- Stock futures hinting at risk aversion, warning of commodity price weakness
Crude oil prices rose after the OPEC+ group comprising the cartel and its top-producing allies decided against boosting output at a meeting over the weekend. Meanwhile, gold prices edged down as signs of trade war escalation stoked haven demand for the US Dollar, punishing the perennial anti-fiat asset by extension.
Beijing called off talks with US officials meant to pave the way for an accommodation after the White House pushed ahead with $200 billion in tariffs on Chinese imports. A slightly softened approach to their implementation was cheered last week, but that optimism was nowhere in sight Monday.
TRADE WAR JITTERS MAY CONTINUE TO HURT COMMODITIES
Looking ahead, a lull in high-profile scheduled event risk may leave sentiment trends in focus. Futures tracking the FTSE 100 and S&P 500 equities benchmarks are pointing convincingly lower, hinting at continued risk aversion. This may encourage further USD recovery at the expense of most commodity prices.
See our guide to learn about the long-term forces driving crude oil prices !
GOLD TECHNICAL ANALYSIS
Gold prices continue to stall below the August 28 high at 1214.30. A daily close above that exposes support-turned-resistance in the 1235.24-41.64 area. Alternatively, a turn below range support marked by the August 24 lowat 1183.28 paves the way for a retest of the swing bottom at 1160.37.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil prices are eyeing chart inflection point resistance at 72.88, with a daily close above that seeing the next major upside barrier in the 75.00-77.31 area. Alternatively, a reversal back below the 70.15-41 zone opens the door for a challenge of rising trend support, now in 65.77-67.64 region.
COMMODITY TRADING RESOURCES
- Learn what other traders’ gold buy/sell decisions say about the price trend
- Having trouble with your strategy? Here’s the #1 mistake that traders make
- Join a Trading Q&A webinar to answer your commodity market questions
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.