Gold and crude oil prices continue to mark time in familiar territory amid thin holiday trade. Yesterday’s upbeat US Consumer Confidence report did not inspire a meaningful response and on-coming home sales data will probably fall on deaf ears as well. The figures’ implications for near-term Fed policy trends are limited at best considering that – by central bank officials’ own admission – much depends on execution of the incoming Trump administration’s fiscal program.
With that in mind, sideways trade seems likely to continue. This should not be a reason for complacency however. Kneejerk volatility can be amplified by diminished liquidity if the markets are startled by a particularly potent unforeseen news-flow.
Gold Technical Analysis – Gold prices remain in digestion mode above the $1100/oz figure. A break below the 38.2% Fibonacci expansionat 1120.72 exposes the 50% level at 1099.91. Alternatively, reversal back above the 23.6% Fib at 1146.47 confirmed on a daily closing basis targets the 14.6% expansion at 1162.35.
Crude Oil Technical Analysis – Crude oil prices continue to consolidate near monthly swing highs. A daily close above resistance in the 54.66-55.15 area (38.2% Fibonacci expansion, trend line) exposes the 50% level at 56.11. Alternatively, a turn below horizontal pivot support at 51.91 targets the 38.2% Fib retracement at 49.80.
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