|Day's Range||1,202.20 - 1,211.00|
West Texas Crude oil futures for November fell 0.01% to $69.58 a barrel as of 5:09 AM ET (9:09 GMT). Meanwhile Brent crude futures, the benchmark for oil prices outside the U.S., decreased 0.18% to $78.89 but still remained near four-year highs.
Based on the current price at $69.58, the direction of the November WTI Crude Oil market is likely to be determined by trader reaction to $69.71 and $69.34. Look for heightened volatility following the release of the EIA inventories report.
Based on the early price action, the direction of the December Comex Gold market today is likely to be determined by trader reaction to the 50% level at $1205.90.
In Could Trade Tensions Support the US Dollar Again? we discussed how the dollar makes a comeback after trade tensions seem to escalate. Year-to-date, gold prices have fallen 8.6% while the US Dollar Index has risen 4.8%. As the news of the new round of trade tariffs hit the market, gold prices fell while the dollar rose.
Investing.com - Gold prices were slightly higher on Wednesday as the dollar softened following the latest trade news.
The direction of the market today is likely to be determined by trader reaction to the EIA report. A surprise build is likely to put a limit on gains. It could also cause a sell-off, but these losses will be contained due to supply concerns because of the Iran sanctions.
Based on yesterday’s price action and the close at $68.77, the direction of the November WTI Crude Oil market early Wednesday is likely to be determined by trader reaction to the Fibonacci level at $69.33.
Gold prices continued to consolidate as trader’s focus on trade tariffs and the risk on trade that allowed stocks to rally. A break of this level would lead to a test of the May highs at 65- basis points. The rally in US yields has been matched by increases in German and Japanese yields which has kept a cap on the dollar. With the dollar continuing to trade sideways, and gold prices quoted in US dollars, gold bulls are having a tough time pushing prices higher.
Based on the early price action, the direction of the September E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the 50% level at 7431.75.
Given current record production, short-term weather concerns should be enough to overcome a minor resistance range at $2.800 to $2.812. However, we’re going to need to see a big jump in demand in order to overcome the main top at $2.859. The main trend on the daily chart will change to up on this move, however, right above it is a major retracement zone at $2.859 to $2.881.
Gold may be under pressure early Monday, but we’re not seeing aggressive shorting. This suggests the tariff news may have already been priced into the market. Furthermore, we’re not really seeing the shedding of risky assets with U.S. stocks trading higher after recovering from early session losses. Additionally, the USD/JPY is also trading higher. This is further evidence that investors aren’t being too rattled by the tariff news.
November WTI and December Brent Crude Oil should continue to push higher throughout the session as long as a possible supply shortage remains the theme. The rally could stop and prices could turn lower if someone counters with concerns over future demand in the wake of the announcement of additional tariffs on China by the United States.
This area has been a lot noisier in the past few session and the market is facing extreme difficulty in moving higher. The silver market rallied significantly during the yesterday’s session but continued to trade in a range bound fashion. The $14.35 level continues to offer strong resistance to the silver prices while $14.10 level underneath is offering strong support.
Investing.com - Gold prices inched lower on Tuesday despite the announcement that the U.S. is slapping 10% tariffs on $200 billion in Chinese goods.
Effects of Sino-U.S. trade war escalation due to US Government announcing tariff on Chinese goods is felt across all USD denominated instruments.
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Investing.com - Oil prices slipped on Tuesday morning in Asia as the U.S. vowed to impose 10% tariffs on a further $200 billion worth of Chinese goods on Monday, which rattled the markets.
The Australian dollar has rallied significantly during trading on Monday to kick off the week, as the 0.7150 level has offered support. I think at this point, it looks as if we are going to continue to go back and forth based upon belief of tariffs being levied on China.
Another set of tariffs on China supporting the U.S Dollar early on, with the RBA meeting minutes failing to give the Aussie Dollar a boost.
Natural gas prices rebounded higher and continues to trade in a tight range. There are few disturbances that could threaten infrastructure in the Gulf of Mexico, which has taken some of the wind out of prices. Demand continues to remain subdued despite a tick up in residential demand due to warm weather that is forecast to cover most of the United States for the next 2-weeks.
Gold prices moved higher but continue to trade sideways, as the dollar was also consolidating and losing ground to the Euro. While interest rates differentials continue to point to a stronger dollar the recent inflation data points to decelerating US inflation expectations. Gold in general moves in the opposite direction from the dollar as the yellow metal is priced in dollars and becomes more expensive as the dollar gains ground. The trade spat between the US and China is continuing to accelerate as the White House announced another potential round of tariffs. Gold prices moved sideways on Monday gaining a little bit of ground, as markets continued to focus on the trade spat between the US and China. Prices were unable to recapture short-term support near the 20-day moving average near 1,324. Additional resistance is seen near the 50-day moving average at 1,327.
It has been a fairly cautious start to a busy trading week with movements observed across currency and stock markets somewhat muted as investors remained on the side-line
The SPDR Gold Trust ETF (GLD) has fallen ~8.4% year-to-date and ~11.5% from its April peak. September is usually a stronger month for gold after the summer doldrums. In this September, however, investors could remain in a wait-and-see mode until the Federal Reserve’s September 25–26 meeting is over.
Based on the early price action, the key area to watch is the Gann Angle/50% price cluster at 1.1626 to 1.1625. Early in the session, the EUR/USD tested this area. A sustained move over 1.1626 will indicate the presence of buyers. If this move gains enough traction then look for a minimum test of 50% of the break from 1.1723 to 1.1618. This intraday target is 1.1671.
Investing.com - Gold prices and the U.S. dollar both slipped on Monday as the United States is set impose a new round of tariffs on Chinese imports.