Abstract:Crude oil prices rose with stocks while gold prices fell as the US Dollar rose with bond yields after the White House shelved a plan to impose tariffs on Mexico.
CRUDE OIL & GOLD TALKING POINTS:
Crude oil prices rose with stocks as US shelved Mexico import tariffs
Gold prices down as bond yields, US Dollar advance in risk-on trade
Sentiment likely to remain in focus, stock index futures point upward
Sentiment-linked crude oil prices gapped higher alongside bellwether S&P 500 futures at the start of the trading week as news that the US has shelved a plan to impose tariffs on imports from Mexico buoyed overall risk appetite. Gold prices fell the upbeat mood cooled Fed rate cut speculation, sending the US Dollar higher alongside bond yields and undercutting the appeal of non-interest-bearing and anti-fiat assets.
CRUDE OIL MAY CONTINUE HIGHER AS GOLD FALLS IN RISK-ON TRADE
Looking ahead, a relatively muted offering on the economic data docket might broad-based trends in the markets mood in focus. Futures tracking Wall Street stock benchmark are pointing convincingly higher, hinting that the risk-on tilt may extend from Asia Pacific trade into European and US hours. That might bode ill for gold as crude oil continues to recover.
Did we get it right with our crude oil and gold forecasts? Get them here to find out!
GOLD TECHNICAL ANALYSIS
Gold prices are pulling back from resistance marked by Februarys swing high at 1346.75. A turn back below resistance-turned-support at 1323.40 sets the stage for a retest of the 1303.70-09.12 zone. Alternatively, a daily close above resistance targetsa trend-defining barrier in the 1357.50-66.06 area.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil prices rose after forming a Bullish Engulfing candlestick pattern at support in the 50.31-51.33 area, as expected. From here, a daily close above support-turned-resistance at 55.75 targets the 57.24-88 zone next. Alternatively, a reversal below 50.31 opens the door to challenge support set from September 2016 in the 42.05-43.00 region.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
The dollar ticked higher on Friday amid a broadly calmer tone in markets as fears over Omicron’s impact eased, but currency moves were muted ahead of a key U.S. payrolls report that could clear the path to earlier Federal Reserve interest rate hikes.
The dollar ticked higher on Friday amid a broadly calmer tone in markets as fears over Omicron’s impact eased, but currency moves were muted ahead of a key U.S. payrolls report that could clear the path to earlier Federal Reserve interest rate hikes.
Crude oil prices may fall if upbeat US retail sales and consumer confidence data cool Fed rate cut bets and sour risk appetite across financial markets.
Gold and crude oil prices may be pressured if the ECB underwhelms investors dovish hopes while higher US core inflation cools Fed rate cut expectations.