(MENAFN- DailyFX) Talking Points:
Gold prices erase gains as selloff resumes as markets weigh Italy vote Crude oil prices rise with stocks in market-wide risk appetiterecovery US ISM data may cap WTI rally as US Dollar gains on Fed outlook Gold prices spiked higher after the outcome of Italy's constitutional referendum sent jitters across financial markets. Intraday gains have evaporated however as investors rethink the vote's implications (as expected), putting the metal back on the defensive.
Risk appetite is firming anew, with benchmark US Treasury yields rising alongside S & P 500 futures ahead of the opening bell on Wall Street as bonds decline. Not surprisingly, this has undermined the appeal of non-interest-bearing assets.
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1473707600938-14'); }); Crude oil has falling in with other sentiment-linked and cycle-sensitive assets, following shares higher. Gains may be relatively capped if upbeat ISM data boosts the US Dollar, driving a further steepening of the projected Fed rate hike path and applying de-facto pressure on the USD-denominated WTI contract.
See the schedule of upcoming webinars and join us LIVE to follow the financial markets!
GOLD TECHNICAL ANALYSIS Gold prices are taking another shot at definitely breaking the 123.6% Fibonacci expansionat 1171.83. Beyond that, the next noteworthy barrier is marked by the 138.2% levelat 1152.30. Alternatively, a reversal above the 100% Fib at 1203.40 targets the 76.4%expansion at 1234.97.
CRUDE OIL TECHNICAL ANALYSIS Crude oil are attempting to break double top resistance in the 51.64-91 area (double top, 76.4% Fibonacci expansion). Confirmation on a daily closing basis paves the way for a challenge of the 100% level at 54.92. Alternatively, a turn below the 61.8% Fibat 50.05 exposes the 50% expansion at 48.55.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya's analysis directly via email, please SIGN UP HERE
Contact and follow Ilya on Twitter: @IlyaSpivak
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.