Gold Prices Looking Forward to FED Policy Meeting

Gold Crude Oil

Gold prices continued to echo the US dollar moves with a sluggish market and inconclusive Monday session. Either way, any tangible direction might not emerge until the Wednesday’s FED policy announcement. As we are anticipating a raise in the interest rate, Gold prices likely to achieve a higher ground, breaking its current swinging pattern. On the other hand, the black gold, crude oil might reach well above 73.50 and Brent oil above 80.00 region by the next Wednesday. When the report is being written, gold is traded at 1200.41 and crude oil is being traded at 72.29.

  • Gold prices are stuck in an uneven range, eying on a range break move catalyzed by FED policy decision.
  • Crude oil price hitting 2 monthly highs, as Saudi production decreases

Crude oil price eyeing API inventory flow data

Crude oil price is now at fresh two monthly high, with decreased Saudi production. Right now, the crude oil price is eyeing the API inventory flow data. The previous forecast of the API inventory flow data is 741.9k, yet a significant reduction is expected as the production is sluggish and perhaps, a well-distinguished rate hike is due. The API inventory flow data is due on Wednesday and a market volatility is expected during the release of the data.

Gold looking forward to break above 1220 mark ahead of FED policy meeting

As gold is swinging back and forth with the USD echoing on the money, it was rather confined in a sluggish range between 1195.45 and 1214.30. However, a FED meeting is due in Wednesday and there is speculation around an increase in the interest rate, which is probably going to be the catalyst for Gold price outbreak. A daily close above 1220 after Wednesday, would open up the window of opportunity to break above 1235.24. Although, a downward move is not expected, yet if it is to happen, Gold may fall back towards the 1190s.

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Gold Price analysis

Gold Dollar Price Index  25-09-2018

Crude oil, demonstrating no lack of opportunities in price outbreak

While the report is being written, gold price is hanging in an intangible balance between 72.13 and 72.35. However, it is closely echoing the USD price. A daily close above 72.50 would open up the opportunity to break above 73.00. Following the FED meeting due in Wednesday, we are anticipating a rate hike and crude oil price break above 75.30-77.50 region. On the downside, it could have been fallen back towards the 70s. Further downfall is not expected as the Saudi output is reduced significantly and API inventory flow data is expected to be shrunk.

Crude oil price analysis

Crude Oil price index 25-09-2018

Fair and square, for the next couple of days, we are not anticipating any range break, until the FED polity decision and API inventory flow data release. We are expecting a range break for Gold above 1220 region after the release of FED policy announcement and it is expected for the oil to break above 75.50 region as well after the release of API inventory flow data. Both of them are due in next Wednesday, 26.09.2018.

Read more about sentiment spike on Crude Oil here.

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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