Gold Prices May Turn Lower, Crude Oil at Risk of Deeper Losses

GOLD CRUDE OIL TALKING POINTS:

  • Gold prices edge up as bond yields drop but range resistance holds
  • Crude oil prices plunge through key support as market mood sours
  • Commodities may fall further on Fed outlook, another risk-off push

Gold prices edged higher as a stalling US Dollar allowed the metal space to capitalize on falling bond yields amid aggressive risk aversion. Lower lending rates are a standby lifeline for non-interest-bearing and inflation-hedge assets. The Greenback’s standstill seemed to reflect the dampening effect of a steep drop against the perennially anti-risk Yen on its own haven appeal.

Sentiment-sensitive crude oil prices tracked shares lower. A late-day rebound in the latter was not matched however after API inventory flow data said stockpiles added a hefty 9.88 million barrels last week. That contrasts unfavorably with expectations calling for a 3.5 million barrel increase to be reported in official EIA statistics due on Wednesday.

COMMODITIES MAY FALL ON FED RATE HIKE BETS, RISK AVERSION

Besides that bit of data, the Fed’s Beige Book survey of regional economic conditions as well as October’s US

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2018/10/24/Gold-Prices-May-Turn-Lower-Crude-Oil-at-Risk-of-Deeper-Losses.html