(MENAFN- DailyFX) Talking Points:
Crude oil prices continue to hover at trend-defining chart support API inventory flow data in focus as supply trends remain clouded Gold prices eye Fed-speak having hit 1-month high on AHCA fail Crude oil prices marked time in now-familiar territory absent fresh news flow informing the clouded supply outlook. A tug of war between the supportive influence of an OPEC production cut accord and downward pressure from swelling swing output particularly in the US continues to confound investors. The weekly APIinventory flow report is now in focus as the markets search for clear-cut direction cues.
Gold prices continued to rise as the aftermath of last week's failure of the AHCA healthcare reform bill continued to define price action. The metal rose to a one-month high as ebbing confidence in the 'Trump trade weighed against Fed rate hike speculation, boosting the relative appeal of non-interest-bearing and anti-fiat assets.
The spotlight now turns to Fed-speak. Comments from Fed Chair Janet Yellen and Governor Jerome Powell as well as Esther George and Robert Kaplan Presidents of the central bank's Kansas City and Dallas branches are due to cross the wires. Game-changing rhetoric seems unlikely however, with Fed officials as much at the mercy of US fiscal policy uncertainty as the markets at large.
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GOLD TECHNICAL ANALYSIS Gold prices are poised to challenge major resistance in the 1263.87-65.23 area (February 27 high, 50% Fibonacci expansion) after breaching the 38.2% levelat 1248.58. A daily close above this barrier exposes the 61.8% Fib at 1281.88. Alternatively, a move back below 1248.58 opens the door for a retest of the 23.6% expansion at 1227.99.
Chart created using TradingView
CRUDE OIL TECHNICAL ANALYSIS Crude oil prices continue to hover above trend-defining support at 47.22 (50% Fibonacci retracement, rising trend line). A daily close below it initially exposes the 61.8% levelat 45.33. Alternatively, a reversal back above the 38.2% Fibat 49.11 paves the way for another test of the 23.6% retracementat 51.44.
Chart created using TradingView
--- 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.
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