CRUDE OIL & GOLD TALKING POINTS:
Commodity costs mark time as US MLK Day vacation saps liquidity
Crude oil costs might fall as dour temper at Davos spooks the markets
Gold costs might stall even when yields fall as haven flows favor Greenback
Commodity costs marked time yesterday in what probably mirrored diminished participation with US markets offline for the Martin Luther King Jr Day vacation. A shortened day on US futures exchanges didn’t appeal to bets of conviction on crude oil and the commonly hands-off backdrop left gold rudderless regardless of the provision of buying and selling within the off-exchange spot market.
CRUDE OIL PRICES MAY FALL ON DOUR MOOD IN DAVOS
Wanting forward, the World Financial Discussion board getting underway in Davos, Switzerland appears more likely to take middle stage. A barrage of feedback from thefinancial coverage and monetary market bigwigs in attendance will provide shall be carefully examined for the prevailing view on the worldwide enterprise cycle in addition to the outlook going ahead. If the totaltemper appears to have darkened, threat urge for food might bitter.
Crude oil might endure on this situation, monitoring decrease alongside inventory costs. Gold might battle to capitalize even when the risk-off temper weighs on bond yields nevertheless as haven demand buoys the US Greenback, undercutting the enchantment of anti-fiat alternate options. Actually, these dynamics are already on show as sentiment sours forward of the Davos gathering in Asia Pacific commerce.
See our information to study concerning the long-term forces driving crude oil costs!
GOLD TECHNICAL ANALYSIS
Gold costs are probing beneath rising development line assist defining the rise from mid-November lows. Affirmation on a day by day closing foundation paves the way in which to problem assist within the 1260.80-63.76 space. A break above fast resistance at 1298.54, the January four excessive, is required to neutralize promoting stress.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil costs proceed to hover beneath resistance within the 54.51-55.24 zone. A break above this barrier confirmed on a day by day closing foundation initially exposes the chart inflection level at 59.05. Help is within the 49.41-50.15 space, with a reversal again beneath that finally setting the stage for a retest of the 42.05-55 area.
COMMODITY TRADING RESOURCES
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
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