(MENAFN- DailyFX) Talking Points:
may look past final US Congress vote to pass tax cut legislation remain locked in familiar range, EIA inventory data due ahead Have a question about trading commodities? to ask it live Commodities made little headway yesterday. Gold prices seemed unimpressed after the US House of Representatives passed a Republican-led tax reformplan. Meanwhile, crude oil prices shrugged at API data showing raw material stocks shed 5.2 million barrels while gasoline storage added 2 million barrels.
Looking ahead, a final vote is expected to clear the way for tax cut legislation to be sent off for President Donald Trump's signature. That however and might pass without much of a response from financial markets.
Official EIA inventory flow statistics are also due. Forecasts envision a 3.5 million barrel draw from crude stockpiles and a 1.7 million barrel gain gasoline reserves. That seems to be broadly aligned with API estimates, so the markets response might be muted absent a major deviation from the consensus view.
What are the forces driving long-term crude oil price trends? !
GOLD TECHNICAL ANALYSIS Gold prices inching toward resistance at 1267.81, the 50% Fibonacci retracement. Breaking this barrier on a daily closing basis opens the door for a test of the 1274.56-75.24 area (November 30 close, 61.8% level). Alternatively, a move back below the 38.2% Fib at 1260.38 exposes the 23.6% retracement at 1251.18 anew.
Chart created using TradingView
CRUDE OIL TECHNICAL ANALYSIS Crude oil prices continue to oscillate within a would-be Triangle chart pattern, a setup arguing for upside continuation in this case. A daily close above the Triangle top (58.32) exposes the 23.6% Fibonacci expansion at 59.83. Alternatively, a move below its bottom (56.37) sees the next downside barrier at 55.04, the 23.6% Fib retracement.
Chart created using TradingView
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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