Talking Points: Commodity Prices Looking to FOMC Minutes for Direction Gold Recovery Cut Short at Resistance Below $1250 Level Crude Oil Finds Interim Support Above the $93.00 Figure A relatively tame offering of second-tier economic data in European hours is likely to see traders looking ahead to the release of minutes from December's FOMC meeting later in the day. The fateful sit-down marked the beginning of the much-anticipated process of "tapering" the Federal Reserve's QE3 program, scaling down monthly asset purchases by a cumulative $10 billion . While the new Fed policy status quo is widely known at this point, traders will be keen to read the minutes nonetheless to try to decipher precisely what variables proved pivotal in pushing the rate-setting committee into action. This may establish a framework for interpreting US economic news flow, helping investors gauge the probability of acceleration or deceleration in the stimulus reduction process. A relatively hawkish tone stands to boost the US Dollar weigh on gold prices amid ebbing anti-fiat demand. It may likewise weigh on risk-sensitive assets, including crude oil. Needless to say, a softer lean that paints the decision to taper as having been particularly narrow may trigger the opposite dynamic. Capitalize on Shifts in Market Mood with the DailyFX Speculative Sentiment Index . CRUDE OIL TECHNICAL ANALYSIS - Prices fell as expected after putting in a Bearish Engulfing candlestick pattern. A break below support at 92.91, the 38.2% Fib expansion, exposes the 50% level at 90.50. Near-term resistance is at 95.90, the 23.6% level. GOLD TECHNICAL ANALYSIS - Prices turned higher as expected after putting in a Harami candlestick pattern. A break above resistance in the 1217.75-22.01 area, marked by the December 2 low and the 23.6% Fibonacci retracement, has exposed the 38.2% level at 1248.70. A further push beyond that aims for the 1261.28-70.28 region, bracketed by the October 11 swing low and the 50% Fib.
Most Popular Stories
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Some California Cities Seeking Water Independence
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- Jack Daniel's Resists Changes to Tenn. Whiskey Law
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Crimea Seeks Financial Integration With Russia
- E.U. Puts Sanctions on Russia, Ukraine Officials
- Will Missing Malaysian Jet Prompt Aviation System Change?
- Chile Shaken by Major Aftershock