GOLD & CRUDE OIL TALKING POINTS:
- Gold prices[1] echo externally-inspired US Dollar[2] price swings
- Crude oil price rally fizzles as Saudi exports hit one-year high
- RBA may indirectly influence gold as oil eyes EIA, API data
Gold prices declined as the US Dollar returned to the offensive[3], sapping the appeal of anti-fiat alternatives epitomized by the yellow metal. The greenback rose to the highest level in 13 months against an average of its major counterparts. Meanwhile, a sentiment-driven rally in crude oil prices was aborted as reports of swelling Saudi exports crossed the wires[4].
RBA IMPACT MAY ECHO IN GOLD PRICES, OIL EYES EIA AND API DATA
Looking ahead, gold prices may continue to reflect externally-driven US Dollar volatility. A lull in top-tier economic news flow might see the benchmark currency reflecting the knock-on effects of price swings in some of its key crosses. Yesterday, that was GBP/USD[5]. Today it might be AUD/USD[6] if that pair turns volatile following the RBA monetary policy announcement.
As for crude, it will size up the EIA Short-Term Energy Outlook report as well as the weekly inventory flow statistics from API. The former will help gauge the extent to which swelling US output can offset reduced supply from Iran, where sanctions are being re-imposed as of today. The latter will be judged against expectations for a 1.79 million barrel outflow to be reported in official DOE figures on Wednesday.
Learn what other traders’ gold buy/sell decisions[7] say about the price trend!
GOLD TECHNICAL ANALYSIS
Gold
