(MENAFN- DailyFX)
CRUDE OIL & GOLD TALKING POINTS: Crude oil pricesedge up on upbeat US jobs data, but resistance holds Gold priceschallenge trend support as Treasury yields,US Dollarrise Risk-off tilt hinted before Fed Chair Powell testimony,FOMCminutes
Crude oil prices rose asupbeat US jobs databuoyed demand hopes. The move conspicuously clashed with the response from broader risk sentiment trends. The bellwetherS & P 500stock index fell on the news (though the losses were later retraced) amid worries that the outcome might trim scope for Fed interest cuts.
In fact, the latter consideration meant that gold prices tracked lower as the figures crossed the wires, sending the US Dollar higher alongside benchmark Treasury bond yields. That tarnished the appeal of non-interest-bearing and anti-fiat assets epitomized by the yellow metal.
CRUDE OIL, GOLD PRICES MAY TRACK DIVERGENT PATHS IN RISK-OFF TRADE
A quiet start to anaction-packed trading weekmay be ahead. A relatively lackluster data docket seems unlikely to inspire follow-through one way or another for marquee commodity prices as traders withhold conviction before testimony from Fed Chair Powell and the release of June FOMC minutes on Wednesday.
A risk-off tilt is hinted in futures tracking key Wall Street equities benchmarks however. That might cap yields and underpin gold prices, at least for now. Cycle-sensitive oil prices might meander lower in the meanwhile, though a breach of the prevailing near-term range probably has to wait.
Get the latestcrude oil and gold forecaststo see what will drive prices in the third quarter!
GOLD TECHNICAL ANALYSIS
Gold prices are pressuring trend line support guiding them higher since late May. A break below it opens the door to challenge a series of back to back resistance-turned-support levels running through 1346.75. Resistance remains at 1433.85, marked by the August 2013 top and the underside of support stretching back to December 2016. A breach above that targets north of the $1500 figure.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil prices are retesting support-turned-resistance at 57.88. A daily close above this barrier sets the stage to challenge the 60.39-95 zone anew. The lower bound of immediate support is at 54.55, with a breach below that targeting the 50.31-51.33 region thereafter.
COMMODITY TRADING RESOURCESSee our guide to learn about thelong-term forces driving crude oil prices Having trouble with your strategy? Here's the#1 mistake that traders make Join a free webinarand have your commodity market questions answered
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To contact Ilya, use the comments section below or@IlyaSpivakon Twitter
MENAFN0807201900760000ID1098734350
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.