Crude Oil Prices May Rise with Stocks But OPEC+ Meeting Looms Large
CRUDE OIL & GOLD TALKING POINTS:
- Crude oil prices hold at key support, may rise with stocks
- Apprehension before OPEC+ meeting might limit upside
- Gold prices weighing diverging bond yields, US Dollar
Crude oil prices rose alongside stocks on Friday amid a broad-based recovery in market-wide risk appetite. The cheery backdrop proved negative for gold prices despite its negative influence on the US Dollar – whose losses typically help lift the metal – as yields rose, sapping the appeal of non-interest-bearing assets.
Asia-Pacific markets picked up on the positive lead at the start of the new trading week and more of the same looks likely ahead. Bellwether S&P 500 futures are pointing convincingly higher before the opening bell on Wall Street. A sparse data docket presents seemingly few roadblocks to continuation.
On balance, that bodes well for the cycle-sensitive WTI contract. Follow-through may be limited however traders look ahead with unease at the upcoming OPEC+ meeting. Gold prices are back on offense, capitalizing on its anti-fiat credentials as the Greenback remains pressured while yields steady near Friday’s close.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil prices managed to hang on at trend line support guiding them higher since late May. Near-term resistance is in the 42.40-43.88 area, with a daily close above that likely to open the door for a challenge of the 50/bbl figure. Alternatively, breaching support sees the next notable inflection point at 34.78.
Crude oil price chart created using TradingView
GOLD TECHNICAL ANALYSIS
Gold prices are in consolidation mode after taking out resistance at 1789.78,the 38.2% expansion. The next upside barrier is marked by the 50%level at 1827.82, with a break above that eyeing the 61.8% Fib at 1864.86. Neutralizing the near-term upside bias in earnest probably calls for a daily close below 1747.74.
Gold price chart created using TradingView
COMMODITY TRADING RESOURCES
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--- Written by Ilya Spivak, Head APAC Strategist for DailyFX
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.