Gold prices continued to edge higher as markets continued to digest impact of the FOMC rate decision. The yellow metal soared while the US Dollar and Treasury bond yields fell in tandem. Officials issued a widely expected rate hike but pointedly left hawks without fuel to feed bets on steeper tightening.
The economic calendar is relatively timid through the rest of the trading week, with upcoming data releases offering at best tertiary clues about where the monetary policy may he heading. That may put prices in consolidation mode, leaving room for a corrective downswing.
Crude oil prices marked time in familiar territory, still unable to make much of seemingly supportive news flow. While this speaks to underlying weakness, sellers need a clear-cut catalyst to reboot momentum and didn’t get one in the past 24 hours. Upcoming US rig count and futures positioning data may help.
GOLD TECHNICAL ANALYSIS – Gold prices continued to edge higher after scoring the biggest daily gain in almost eight months. A daily close above the 23.6% Fibonacci expansion at 1227.99 sees the next upside barrier marked by the 38.2% level at 1248.58. Alternatively, a reversal back below the 14.6% Fib at 1215.29 targets the March 10 low at 1194.70.
Chart created using TradingView
CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices remain in consolidation mode. A daily close below the 50% Fibonacci retracementat 47.22 paves the way for a test of the 61.8% level at 45.33. Alternatively, a move back above the 38.2% Fib at 49.11 exposes the 23.6% retracement at 51.44 anew.
Chart created using TradingView
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