CRUDE OIL & GOLD TALKING POINTS:
- Crude oil prices rise on hopes for relieving of US-China commerce warfare
- Gold prices decline as bond yields recouple with the US Dollar
- US market vacation closure could mute worth motion in commodities
Crude oil costs roared greater alongside shares amid a broad-based restoration in threat urge for food on Friday. The transfer appeared to mirror experiences of an overture from China meant to de-escalate the trade war with the US. Buyers’ rosy disposition translated right into a parallel rise in bond yields and the US Greenback because the prospect of resolving a serious financial headwind buoyed Fed charge hike bets. Not surprisingly, gold costs fell.
CRUDE OIL MAY STALL, GOLD PRICES EYEING HEADLINE RISK
Trying forward, crude oil could battle for directional progress. Buying and selling in futures will likely be shortened and general liquidity diminished by the Martin Luther King Jr. Day vacationwithin the US. Buying and selling in OTC spot markets will proceed, so gold could but reply to headline circulate shaping general sentiment because the US government shutdown and the Brexit drama drag on. What this implies in observe is unclear nevertheless.
See our information to be taught concerning the long-term forces driving crude oil prices!
GOLD TECHNICAL ANALYSIS
Gold costs dropped to check assist at a rising pattern line guiding the transfer greater since mid-November, suggesting they might but make good on the bearish Darkish Cloud Cowl candlestick sample produced over two weeks in the past. A break beneath this barrier, now at 1278.15, exposes the 1260.80-63.76 zone. Close to-term resistance stays at 1298.54, the January four excessive.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil costs are approaching resistance within the 54.51-55.24 zone, with a day by day shut above that opening the door for a check of the chart inflection level at 59.05. Help is within the 49.41-50.15 area, with a flip again beneath that paving the best way for an additional problem of the 42.05-55 space.
COMMODITY TRADING RESOURCES
— Written by Ilya Spivak, Forex Strategist for DailyFX.com
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