GOLD TECHNICAL ANALYSIS : Gold prices are under down trend now-familiar range support in the 1840-$1838 Level. Breaking below this barrier on a daily closing basis looks likely to open the door for target $1810/oz figure to challenge former resistance in the $1780 zone. Alternatively, an upswing past the $1910 inflection region probably targets the swing top @ $1958.
CRUDE OIL PRICES MAY RISE IF EU LEADERS’ SUMMIT BUOYS MARKET MOOD
Looking ahead, a gathering of the leaders of European Union member states for a virtual summit may capture the spotlight. The conclave is seen as a last-ditch opportunity to nail down a Brexit deal with the UK such that there is enough time for implementation before the hard divorce deadline at year-end. Last week’s exit of two hardline Brexiteers from UK Prime Minister Boris Johnson’s cabinet have raised hopes for an accord.
If soundbites from the summit suggest that meaningful progress has finally been made, the markets will have been spared a major source of anxiety. That may brighten investors’ mood market-wide, echoing as supportive for sentiment-sensitive crude oil prices.
Gold may find a bit of support as well if the chipper mood weighs on haven-seeking USD demand. Gains might be capped by a parallel rise in bond yields however.
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