CRUDE OIL & GOLD TALKING POINTS:
- Crude oil prices make good on bearish chart setup, hit 3-week low
- Gold prices rise as world slowdown worries weigh on bond yields
- Threat urge for food could undergo additional if 4Q UK GDP figures disappoint
Crude oil costs paused to digest losses Friday following a brisk, sentiment-driven drop. Gold costs rose as yields continued to float decrease amid lingering world slowdown fears. The speed on the benchmark 10-year US Treasury bond hit a weekly low, boosting the relative attraction of non-interest-bearing belongings.
UK GDP DATA MAY SOUR SENTIMENT, WEIGHING ON CRUDE OIL
Fourth-quarter UK GDP information is within the highlight from right here, with forecasts pointing to a slowdown. Output is predicted to have added 0.Three p.c within the remaining three months of 2018, down from 0.6 p.c within the three months to September. The on-year pattern development price is projected to tick right down to 1.four p.c.
UK financial news-flow has notably deteriorated relative to analysts’ baseline projections just lately, opening the door for a disappointing consequence. Which may compound issues a couple of downturn within the world enterprise cycle, sending crude oil decrease alongside different dangerous belongings.
The implications of such an consequence for gold are bit extra convoluted. Help from an additional drop in bond yields could also be countervailed if haven-seeking capital flows buoy the US Dollar, undermining the attraction of anti-fiat options epitomized by the yellow steel.
See our information to study in regards to the long-term forces driving crude oil prices!
GOLD TECHNICAL ANALYSIS
Gold costs proceed to stall above a dense layer of assist underpinned by a rising pattern line set from mid-November. A break by means of this barrier – confirmed on a day by day shut under 1294.10 – would expose the assist shelf at 1276.50 subsequent. Alternatively, a push above chart inflection level resistance at 1323.60 units the stage for a problem of the pivotal 1357.50-66.06 area.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil costs are edging decrease after producing a bearish Night Star candlestick sample as expected, hitting a three-week low. From right here, a day by day shut under assist within the 49.41-50.15 space opens the door for a decline towards the 42.05-55 zone. Alternatively, a reversal again above the February four excessive at 55.75 sees the subsequent layer of resistance within the 57.96-59.05 area.
COMMODITY TRADING RESOURCES
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
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