Gold Price Jumps after Yellen Dovish Remarks Copper Price Slides
Date
3/30/2016 9:08:46 AM
(MENAFN- DailyFX) Talking Points:
Gold price rose as Fed Chair Yellen emphasized caution in Fed rate policy Oil price pared losses after data of a smaller than expected inventory build Copper price hit three-week low on Yellen’s outlook concerns Crude oil prices cut losses late in New York session after data showed a smaller than expected build in crude inventories. The American Petroleum Institute published an inventory figure of2.6 million barrels in the week to March 25 compared with 3.3 million barrels expected. Gold prices jumped to a daily high of $1243.1 after hitting a one-month low on Monday as buyinginterests returned after Federal Reserve Chair Janet Yellen said the Fed should proceed cautiously in interest rate policy. Her comments diverged from the recent hawkish remarks from other Fed members. U.S. Treasuries rallied with 2 and 10-year notes hitting four-week highs as the market expected a more gradual pace of rate hikes. Copper prices hit a three-week low of $2.1920 on Wednesday due to global growth concerns expressed in Ms. Yellen’s remarks. Looking ahead China’s reviving property market will likely boost sales of steel copper and other construction materials. However the outlook for metal demands remains gloomy as the Asian Development Bank downgraded its economic growth forecast for Asian developing economies in 2016. Need a hand to start trading: Free Guides Want to read market’s momentum: Speculative Sentiment Index Losing Money Trading Forex? This Might Be Why. GOLD TECHNICAL ANALYSIS – Gold prices rose although they still fell short of a medium-term trend line. An immediate support level at 1207.6 held firmly. Current momentum signals indicate an upside potential in gold prices. Resistance levels are in the 1265-1282 area. Daily Chart - Created Using FXCM Marketscope COPPER TECHNICAL ANALYSIS – Copper prices dropped for a second consecutive session. This price slip brought attention to the 2.1485 support level. Similar to the case of oil a downward pressure is prevalent in copper chart. Investors should watch out for a test of the support level. Daily Chart - Created Using FXCM Marketscope CRUDE OIL TECHNICAL ANALYSIS – Oil prices traded below the $39 mark today as a downward momentum persisted. This level may act as a resistance level while oil prices fluctuate according to broader market developments. An immediate support level is at 34.79. Daily Chart - Created Using FXCM Marketscope --- Written by Nathalie Huynh Currency Strategist for DailyFX.com To receive Nathalie’s analysis directly via email please SIGN UP HERE Contact and follow Nathalie on Twitter: nathuynh
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