Gold and Crude oil price may fall further

Gold and Crude oil price may fall further ahead of Upbeat FOMC

Gold and crude oil technical analysis after US mid-term election

  • Gold and crude oil price holding a tight range, yet still holding on to a falling pattern after US mid-term election
  • Daily gain for both Crude oil and gold lost, as market risk appetite enhanced at the verge of a FED rate hike
  • Gregarious FOMC policy statement pay batter the commodity prices lowering further

Commodity prices have experienced a declining move yesterday, as an aftermath of US mid-term election. An initial weakness of USD offered a market lift-up, however, the market risk appetite has grown larger, as republicans successfully defended their majority in the senate. At this moment, the gold is being traded at 1224.93 and crude oil positions at 61.78, holding on to a declining pattern.

Perhaps, the initial greenback reaction after US mid-term election was a momentary result and in the long run, the gold and crude oil may lose further ground, as an aggressive FOMC is upcoming and due today at GMT 19.00.

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Right now, the spotlight goes back to FOMC monetary policy announcement and a rate hike is not expected and market may tighten till December. However, the tone of policy statement would act as a catalyst for altering the market movement and a hawkish FOMC tone is anticipated that would harbor a certain ill health for both gold and crude oil price.

Evidences have supported that the US data outcomes have improved in relation to the September and October set up. Meanwhile, the leading PMI survey data has also been pointing towards a growth pick up for USD, resulting in a downward momentum for gold and crude oil.

Gold daily price chart

Gold daily chart

Crude oil daily chart

Bottom line

Gold pricing are inching lower after another set of resistance at 1235-1241 region. Immediate support is expected at 1211-1214 region and a daily closure below that point would point towards a retest of 11.90-11.87 region. On the contrary, a push above the key resistance of 1241 could pave the way to break above the upside barrier in the 1260-1265 region.

Crude oil price is breaking its key support and residing at 61.77, April 6th low. From this point, a break below 60.00 region, could retest the February low at 58.11. Alternatively, a daily closure above 61.84 would open the opportune door to retest the 64.50-65.00 area.

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]


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