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Crude oil and gold prices at risk on Powell Tale, FOMC protocols



Crude oil products and gold logs:

  • Crude oil prices taller higher to challenge two-month trend resistance
  • Gold price tagging after near-term support
  • Fed Chair Powell testimony, FOMC minutes may damage commodities

Crude oil prices reflected one modest recovery in risk willingness, pacing a rise in the bellwether S & P 500 index. Gold prices lined up in tandem. These features probably reflect pre-positioning before major event risks ahead as a much-anticipated market console congressional testimony from Fed Chair Powell as well as the release of minutes from the June FOMC policy meeting .

The main issue in play is the returnable difference between Fed's own prospects for future monetary policy and the financial markets. June's forecast update provided a 25bps cut between now and the end of 2020. Investors are by far the stupid mode, seeing at least two and possibly three cuts (for a 50-75bps aggregate relief) before the end of this year.

RUDE OIL AND GOLD PRICE MUST BE JOINED ON THE POWELL TESTIMONIA, FOMC MINUTES

Markets have gone ahead of the Fed in a tough policy pivot since the end of 201

8. To the extent that they are already optimized for rapid large-splash relief, the central bank comments will continue to follow the investor's management, may have relatively little opportunity for further adaptation. Concerns about the bad conditions that would force such measures could, however, provide for sentiment, but increased the retreat to the US dollar.

On the other hand, the rhetoric that gives a return to it would be excessive in the market view, could force traders to represent the expectations of a more modest attitude. Not surprisingly, Greenback probably seems to find support in this scenario as well. It seems to indicate that stasis may be the best scenario for the oil price, while gold is mostly exposed to sales pressure.

Get the latest crude oil prices and gold forecasts to see what will drive the prices in the Third Quarter!

GOLD TECHNICAL ANALYSIS

The gold prices are slimming in digestive mode after edging under the trendline support that controls the movement higher since the end of May. Sellers face a dense support block that passes through 1346.75 from here. Critical Resistance Remains at 1433.85, characterized by August 2013 high and earlier appearing support from December 2016.

  Gold Price Chart - Daily

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices lined up to test resistance capping gains since late April, now at 59.43. A daily close over it is quickly followed by previous support in the area of ​​60.39-95. Alternatively, a return lower that takes prices under the support of 54.55 goals 50.31-51.33 zone.

  Crude Oil Chart - Daily

TRADE RESOURCES

— Posted by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments below or @IlyaSpivak on Twitter [19659031]
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