GOLD AND CRUDE OIL FORECAST

Commodity Market Talking Points:

• Gold rates keep on falling in FOMC meeting aftermath
• Crude oil rates fall to six-week low as selloff heats up 

Gold:

Gold charges retreated to a seven-week low as markets endured to reckon with the final results of the FOMC policy announcement. The spotlight now turns to April’s US employment report. This is predicted to show payrolls growth picked up last month after hitting a ten-month low in March.

The Fed has disregarded the first-quarter downturn in US development as “transitory”, signaling that it’s appetite for price hikes is undiminished. Because of this something shy of a dramatic disappointment is unlikely to offer the gold a lot of a lasting lifeline.

Gold Technical Level:

A break above $1229.51 (38.2% fib) would open up upside towards $1241.13 (Mar 24 low) and $1247.31 (Apr 10 low). On the lower side, breach of support at $1225.57 (previous day’s low) would expose $1216.80 (Feb 15 low) and $1209.14 (50% fib).

Crude Oil:

Crude oil prices maintain to sink – hitting a six-month low in Asian trade – after suffering the largest day by day decline from early March. The drop inside the benchmark WTI futures contract was observed by way of the highest extent in months.

Traders self belief in the capability of an OPEC production reduce scheme to offset swelling swing delivery has been eroding since mid-April. Liquidation extended after EIA reported that, amongst different things, US output rose for an 11th consecutive week. That’s the longest streak of returned-to-returned gains in over four years.

Crude Oil Technical Level:

A break above $ 45 (round number) could yield a test of $ 45.63 (daily top) beyond which $ 46.19 (daily pivot) could be tested. While a breach of $ 43.50 (psychological levels) would expose $ 43.03 (early Nov lows), below which downside opens up for a test of $ 42.20 (mid-Nov lows).

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