Gold Prices Soar to Challenge Range Top as US Dollar Drops
Date
2/17/2019 11:19:58 PM
(MENAFN- DailyFX)
Gold & crude OIL TALKING POINTS: gold prices soar to challenge 3-week range top as the US Dollar drops Breakout upward might expose trend-defining 1357.50-66.06 resistance Crude oil prices break February top, set stage for rise to 3-month high Gold prices rose on Friday even as bond yields rose in risk-on trade typically a headwind for the yellow metal as the US Dollar plunged, boosting the appeal of anti-fiat alternatives. The greenback's retreat looks to have reflected ebbing haven demand . Crude oil prices tracked Stocks upward.
US
market CLOSURE LIKELY TO SAP LIQUIDITY, CONVICTION
Looking ahead, US market closures for the President's Day holiday are likely to sap liquidity and make for consolidative trade. Diminished participation might also amplify kneejerk volatility in over-the-counter markets including spot gold if unforeseen headline risk emerges. Proceeding cautiously seems prudent.
Learn what other traders' gold buy/sell decisions say about the price trend!
GOLD TECHNICAL ANALYSIS
Gold prices continue to tread water above a support block running through 1294.10. A daily close below invalidates the uptrend from mid-November and exposes the next layer of support at 1276.50. Alternatively, a push above resistance at 1323.60 targets the trend-defining top in the 1357.50-66.06 area.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil prices continue to pressure chart resistance, but a bearish Evening Star candlestick pattern still warns of topping. A daily close above the February 4 high at 55.75 would invalidate the setup and expose the 57.96-59.05 area. Alternatively, a downswing from here that takes out support in the 49.41-50.15 zone opens the door for a decline back toward the 42.05-55 region.
COMMODITY TRADING RESOURCES See our guide to learn about the long-term forces driving crude oil prices Having trouble with your strategy? Here's the #1 mistake that traders make Join a Trading Q & A webinar to answer your commodity market questions --- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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