CRUDE OIL & GOLD TALKING POINTS:
- Crude oil price chart shows topping setup below key resistance
- OPEC and EIA reports to help inform supply trend expectations
- Gold prices negotiating uptrend support from December 2016
Commodity prices fell on Friday, with crude oil and gold prices down in tandem as bets on rising lending rates undercut the appeal of non-interest-bearing and anti-fiat alternatives. The spread between two- and ten-year US Treasury bond yields widened as borrowing costs at the longer end edged up.
OPEC, EIA TO INFORM CRUDE OIL SUPPLY OUTLOOK
From here, the OPEC monthly report as well as EIA drilling productivity statistics are in focus. The former will help illustrate the extent to which new sanctions on Iran might impact global supply flow. Saudi Arabia has pledged to keep prices stable even if the cartel’s third-largest producer is sidelined. Meanwhile, the EIA will help gauge how much swing output might be coming to market in the near term.
See our quarterly crude oil price forecast to learn what will drive the trend through mid-year!
GOLD TECHNICAL ANALYSIS
Gold prices continue to hover above rising trend support set from December 2016, now in the 1284.71-1302.73 area. A break below that would mark a major shift in the dominant trajectory and initially expose the next layer of support in the 1260.80-66.44 region. Alternatively, a rebound though minor upside barriers in the 1323.60-33.42 zone opens the way for a retest of resistance defining the bearish bias since the beginning of the year. This is marked by a channel ceiling and a double top in the 1349.68-57.50