GOLD & CRUDE OIL TALKING POINTS:
Gold costs rise, crude oil costs fall with shares as Viacom exits China
Technical positioning nonetheless warns that gold costs could also be forming a high
Crude oil worth restoration struggling to maintain momentum close to $53/bbl
Benchmark commodity costs appeared to replicate inconclusive cues from broad-based market sentiment traits on Friday. Gold costs rose as early danger aversion weighed on bond yields, boosting the attraction of non-interest-bearing property. A late-day US Greenback bounce within the wake of native CPI knowledge triggered the transfer’s unwinding, leaving the steel little-changed on the day.
Crude oil costs probed greater however quickly fell alongside shares by way of the risk-off push within the first half of the day. The benchmark WTI contract managed no higher than standstill when equities mounted a rebound in Wall Avenue commerce nonetheless. Worries about financial headwinds type the US authorities shutdown appeared linked to early promoting however inventory merchants had been maybe unwilling to hold publicity over the weekend.
VIACOM CHINA EXIT SOURS SENTIMENT, BOOSTS GOLD AS OIL FALLS
Trying forward, one other bout of danger aversion could show to be decisive for near-term worth motion. Shares are buying and selling sharply decrease in Asia Pacific commerce following information that Viacom is divesting from its operations in China. That has despatched native shares steeply decrease, with Tencent – an area accomplice for Viacom – main the decline. S&P 500 futures and crude oil are down in tandem and gold is up as yields retreat.
A uninteresting providing on the financial calendar suggests established momentum faces comparatively few hurdles to continuation, hinting at extra of the identical by way of the remainder of the buying and selling day. Any stray headlines informing traders on progress towards ending the US authorities shutdown or de-escalating the US-China commerce conflict may alter the prevailing market temper nonetheless.
Be taught what different merchants’ gold purchase/promote selections say concerning the worth development!
GOLD TECHNICAL ANALYSIS
Gold costs have stalled however the look of a bearish Darkish Cloud Cowl candlestick sample continues to counsel a high could also be taking form. A each day shut under preliminary help at 1282.27 targets the 1257.60-66.44 space (former resistance, rising development line). Alternatively, a breach above the 1302.97-07.32 zone would expose a minor barrier at 1323.60, adopted by a trend-defining high within the 1357.50-66.06 area.
CRUDE OIL TECHNICAL ANALYSIS
The rebound in crude oil costs paused under minor resistance at 53.39. This barrier is adopted by a extra substantive hurdle within the 54.51-55.24 space, with a each day shut above that exposing 59.05. Alternatively, a flip again under resistance-turned-support at 49.41 paves the way in which to revisit the 42.05-55 area.
COMMODITY TRADING RESOURCES
— Written by Ilya Spivak, Forex Strategist for DailyFX.com
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