The Price of gold Sink, the Crude Oil, the Risk of Falling, with OPEC+ Meeting in Doubt

Gold, the XAU/USD Crude Oil OPEC+ – the Points of discussion

• The price of gold sank as the risk tone, fed, Treasury yields
• ADP is estimated to be closer contraction of jobs ahead of Nfps
• The price of crude Oil may decrease the OPEC countries+ the meeting in doubt

The price of gold fell -1.51% in the past 24 hours, the worst-performance-in-a-day-since April 17. The anti-fiat, the yellow metal was under selling pressure as US government bond yields climbed during Wall Street trading session. The Dow Jones also rallied +2.05% as the ‘risk’ ton is depressed, the port is linked to the U.S. Dollar. As such, the XAU/USD is likely to concentrate on a decrease in the price of Treasury of the request for the safety of a relaxed.

What seems to inspire the optimistic tone of the race has been relatively less dismal estimate for the local job losses from the Automatic Data Processing, Inc. (ADP). The company expects approximately $ 2.7 million reduction in the private sector positions last month. This is significantly less than the 8 million, with the consensus for this week non-farm payrolls report taken from Bloomberg surveys.

Despite the rally in global equities, growth-linked crude oil prices have been unable to capitalize on the good business environment. The earlier than planned on June 4 at the OPEC+ meeting, it was put in doubt after Saudi Arabia and Russia have expressed reluctance to extend production cuts, … and more compliance of the participating members. The origin of the meeting scheduled for the 10th of June, is now in question, for the same reason.

This risk, the more of the walking dead in the price of crude oil as previously indicated, the. Attention in advance, turns to the US initial jobless claims report. About 1.8 million are expected to file for unemployment last week, down from 2.1 m in front. A softer than expected print could highlight the expectations of a robust economic recovery. That could affect the yellow metal, if government bond yields rise. It is, as my The Wall Street index tests the key consists of.

Gold Technical Analysis

The price of gold decreased to a test without batting an eyelid support from the second half of May, the red line on the daily chart below. This is a result of the release of the key the resistance that is in a range between 1730 – 1747. However, taking the trend line may need an additional confirmation, arguing that a reversal is in play. This is because the key support is located below, between 1658 – 1678. A break below this can open the door to a more profound loss.

XAU/USD Daily Chart

Chart Created Using TradingView

Crude Oil Technical Analysis

WTI crude oil is left behind, a Doji candlestick on the daily chart below. It is a sign of indecision which has been formed just below the resistance at 39.23. In this last, the month of August 2016 to be low. A close lower after the Doji could increase the risk of a reversal of the given source. Such an outcome would be then to focus on the inflection in the range between 29.11 – 31.14. Otherwise, other gains of show, at the beginning of January lows around 49.42.

WTI Crude Oil Daily Chart

Chart Created Using TradingView

— Written by Daniel Dubrovsky, a Currency Analyst to DailyFX.com

To contact Daniel use the comments section below, or @ddubrovskyFX on Twitter