Gold, Crude Oil Price Gains Fail to Breach Key Chart Barriers

GOLD CRUDE OIL TALKING POINTS:

  • Gold prices correct higher as the US Dollar retraces gains
  • Crude oil prices manage meager bounce following plunge
  • Thin market liquidity might amplify any kneejerk volatility

Commodity prices were in corrective mode yesterday after the prior session’s fireworks. Gold prices edged higher as the US Dollar retraced some of Tuesday’s gains while a cautious improvement in risk appetite helped buoy sentiment-sensitive crude oil prices. They rose alongside the bellwether SP 500 index, seemingly ignoring EIA inventory data showing an unexpectedly large 4.85 million barrel build last week.

Looking ahead, the closure of US financial markets for the Thanksgiving holiday is likely to drain liquidity and dampen price action. Thin trading conditions might amplify kneejerk volatility in the event that a particularly potent bit of news hits the newswires unexpectedly. Market participants would be wise to question scope for follow-through on any such moves before participation levels rebuild.

Learn what other traders’ gold buy/sell decisions say about the price trend!

GOLD TECHNICAL ANALYSIS

Gold prices are testing a downward-sloping resistance line at

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2018/11/22/Gold-Crude-Oil-Price-Gains-Fail-to-Breach-Key-Chart-Barriers.html