Gold Prices May Decline as Fed Officials Talk Up Rate Hikes

Talking Points:

  • Gold prices stall after rising to a three-week high
  • Upbeat Fed commentary may trigger a turn lower
  • Crude oil prices rise with OPEC meeting in focus

Gold prices edged higher on Friday in a move that seemed corrective after the metal suffered its largest drawdown in two weeks in the preceding session. The spotlight now turns to a busy docket of scheduled commentary from Fed officials.

Comments from Governor Lael Brainard as well as Philadelphia and Minneapolis branch presidents Patrick Harker and Neel Kashkari are due to cross the wires. Rhetoric suggesting the central bank remains on track to raise rates next month despite recent US political jitters may weigh on gold. 

Crude oil prices continued to push upward even as Baker Hughes reported that the number of active US extraction rigs increased again last week. That seemed to reflect hopes that an OPEC-led production cut effort set to expire mid-year will be extended when the cartel and its allies meet later this week.

Russia and Saudi Arabia favor keeping the scheme in place through the first quarter of next year and many of the relevant parties have already voiced their support. That suggests prices may largely reflect a prolonged arrangement at this stage, robbing the actual announcement of market-moving potential.

In the meantime, speculation may continue to keep oil relatively well-supported, although upward momentum might slow somewhat. Prices may be asymmetrically sensitive to news-flow suggesting the pro-cuts consensus is not as strong as markets hope however. Such a headline might produce significant liquidation.

What do retail traders buy/sell decisions say about crude oil and gold price trends? Find out here!

GOLD TECHNICAL ANALYSIS – Gold prices are digesting gains after testing resistance in the 1256.74-63.87 area, which has variously acted as support and resistance since late February. A break higher on a daily closing basis exposes trend line resistance at 1280.51. Alternatively, a reversal back below the 23.6% Fibonacci expansion at 1235.91 targets an upward-sloping support line at 1219.23.

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices continue to push upward, rising to the highest level in a month. From here, a daily close above the 61.8% Fibonacci retracement at 50.85 opens the door for a test of the 76.4% level at 52.51. Alternatively, a reversal back below the 50% Fib at 49.50 exposes the the 38.2% retracement at 48.15 anew.

Chart created using TradingView   

By Ilya Spivak,

Source:- DailyFX

FTSE 100 Tech Outlook: Trading Between Key Lines o...
Latvia Jobless Rate Rises Slightly In Q1

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Monday, 19 August 2019
 
     
 

Latest Spot Rate

 
19 August 2019
A positive start to the week - MarketPulseMarketPulseHome/AUD/Currency/EUR/FX/Technical Analysis Forex/USDShare 0 Equities move higherFriday’s positive mood on Wall Street continued in morning trade in Asia, with US indices gaining between 0.49% and...
19 August 2019
Prepared by Jeff Halley, Senior Market Analyst A quiet weekendThe weekend was blissfully quiet on the news front with even the Hong Kong protests passing without much incident. Hong Kong incidentally, will be the focus for other reasons this afternoo...
19 August 2019
Daily Markets Broadcast 2019-08-19 - MarketPulseMarketPulseHome/Daily Markets Broadcast/DAX/Indices/Market Pulse/Technical Analysis/Technical Analysis IndicesShare 0Daily Markets Broadcast2019-08-19Wall Street gains on trade talk progress...
17 August 2019
The US Dollar is mixed on Friday as risk appetite returns ahead of the weekend after a volatile week battered stock markets and drove safe havens higher. On a weekly basis the greenback will be higher against most major pairs. Stock markets rose on F...
17 August 2019
OANDA Market Insights - episode 78 (podcast) - MarketPulseMarketPulseHome/Central Bank Watch/Commodities/Currency/FX/Indices/Market Pulse/Media/Podcasts/USDShare 0OANDA Senior Market Analyst Craig Erlam previews the week’s business and market news w...
How It Works | About | Contact | Privacy Policy | Forex Marketing
© 2009 - 2019 Forex Forum. All Rights Reserved. Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.