Gold Pushes Higher, Oil Action Dropping
GT247.com | Jun 13, 2019 04:47AM ET
The commodity market has become the “go-to” for investors when the equity markets strain and this time around it is no exception. Global economic growth fears have escalated yet again as the U.S.-China trade negotiations continue and the U.S. FED makes its decision on interest rates amid weaker inflation data.
Commodities like Gold are the safe havens of choice when it comes to uncertainty in the international markets and that is evident in the current rise in the precious metal. The Gold (XAU) price has risen close to 4% since the start of the month as the U.S-China trade war fears pick up steam.
Technical points for Gold (XAU):
- The price action has gained momentum after the descending triangle upward breakout which has also reached its Technical Analysis target price.
- We might see the yellow metal push even higher back to $1350/ ounce if market fears persist.
- The next major technical resistance level price will encounter would be the $1350/ ounce price level and will be watched closely.
The Oil market has not been spared by the U.S-China trade war uncertainty as can be seen in the decline in Oil prices despite the OPEC + nations supply cuts.
The recent Oil inventories release placed a damper on the price of WTI and Brent as Crude Oil prices fell as much as 4% as stockpiles continued to increase. Crude inventories rose by 2.2 million barrels from the analyst expected decline of 481 000 barrels.
The Oil market rose quite significantly this morning as news broke that two Oil tankers were attacked in the Gulf of Oman and that the tankers were on fire. Crude rebounded over 4% but gave back some earlier gains as news trickles in.
h3 Some technical points for Brent Crude Oil:/h3- Brent Crude Oil’s price action has dropped significantly since the highs we saw in mid-April 2019 when the price nearly reached $75/ barrel.
- Price has found support at the $59.11/ barrel and might encounter resistance at the $64.16/ barrel price level.
- The Relative Strength Index (RSI) indicator shows that the price action has reached oversold levels, but this might continue if the price does not clear the resistance level at $64.16/ barrel.
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