GOLD & CRUDE OIL TALKING POINTS:
- Gold price breakdown implies measured draw back goal close to $1215/oz
- Crude oil prices treading water, struggling to interrupt above $65/bbl mark
- Skinny vacation liquidity might stall progress, but additionally amplify sudden jolts
Gold costs edged larger regardless of a stronger US Dollar in what regarded like a correction after the steel hit a four-month low. Decrease bond yields in opposition to the backdrop of worldwide slowdown fears after a worrying set of Eurozone PMI figures seemingly helped allow the tepid restoration.
Crude oil costs idled in acquainted territory. A modest rise introduced the WTI contract up off the month-to-month vary flooring however that was the extent of what patrons might muster. Maybe merchants had been simply not ready to point out directional dedication forward of closures for an extended vacation weekend in most main markets.
COMMODITY PRICE SPIKES POSSIBLE IN THIN LIQUIDITY
Liquidity has virtually definitely drained to a trickle and can stay scarce whereas a lot of the world’s bellwether exchanges are shuttered, first for the Good Friday vacation and thereafter for Easter Monday. This most likely means near-standstill for commodity costs till Tuesday.
Having stated that, you will need to keep in mind that over-the-counter spot commodities like gold by no means actually “shut” and US markets return Monday, so crude oil futures will likely be open to commerce. If a very eye-catching headline hits the wires, low participation ranges might amplify any kneejerk volatility.
See the latest gold and crude oil forecasts to be taught what is going to drive costs within the second quarter!
GOLD TECHNICAL ANALYSIS
Gold costs paused to consolidate losses after finishing a bearish Head and Shoulders (H&S) chart formation. Close to-term assist is within the 1260.80-63.76 space, with a break under that focusing on the 1235.11-38.00 zone. Extra broadly, the H&S setup requires a measured transfer all the way down to 1215.00. Alternatively, breaking again above neckline support-turned-resistance at 1281.41 targets the 1303.70-09.12 area.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil costs are treading water at resistance within the 63.59-64.88 space. A break above that in addition to the follow-on 66.09-67.03 inflection zone units the stage to problem the $70/bbl determine. Alternatively, a each day shut pattern line assist at 61.50 overturns the uptrend from December lows and units the stage for deeper losses. The next draw back obstacles come up at 60.39 and the 57.24-88 area.
COMMODITY TRADING RESOURCES
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
To contact Ilya, use the feedback part under or @IlyaSpivak on Twitter