(MENAFN- DailyFX) Talking Points:
prices may hold at key support as Fed rate decision looms prices looking to EIA drilling report for direction cues to learn long-term crude oil trend fundamentals Gold prices fell as improving risk appetite on Wall Street epitomized by a new record high on the benchmark index drove capital flows out of the safety of Treasury bonds and drove yields higher. That understandably undermined the appeal of non-interest-bearing assets.
From here, the yellow metal may struggle to find near-term direction as all eyes turn to the . The central bank is expected to unveil 'quantitative tightening (QT) to wind down its massive post-crisis balance sheet and update official interest rate hike path projections.
Crude oil prices marked time after rebounding to a four-month high, as . The monthly EIA Drilling Productivity report now enters the spotlight. Traders are likely keen to see the extent to which hurricane-related output disruptions affected the US output counterweight to OPEC-led production cuts.
Retail traders expect gold to go up. what that hints about the actual price trend!
GOLD TECHNICAL ANALYSIS Gold prices are probing below support at 1321.51 (23.6% Fibonacci retracement, trend line), with a daily close below that paving the way for a challenge of the 1295.46-99.25 area (38.2% level, double top). Alternatively, a turn back above the 14.6% Fib at 1335.24 targets the September 8 high at 1357.50.
Chart created using TradingView
CRUDE OIL TECHNICAL ANALYSIS Crude oil prices stalled after testing resistance marked by the August 1 high at 50.40. A break above this threshold on a daily closing basis exposes the May 25 top at 51.97. Alternatively, a reversal below trend line resistance-turned-support at 49.08 opens the door for a retest of the September 11 low at 46.98.
Chart created using TradingView
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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