Crude and Gold Resistance
October 23rd, 2009 Posted in Oil and Precious Metals
Name: Russell Glaser
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Oil prices dropped during Friday’s trading as a stronger dollar diminished support for the commodity. The inverse relationship between crude oil, gold, and the dollar, along with the improving global economy has been driving the rising price of crude for the month. Gold has been range traded today as it has been for the week with the price searching for direction. The two commodities may have hit significant support and resistance lines today.
The release of better than expected housing data boosted trader’s appetite for the greenback as the numbers were a positive for the American economy. In turn, the price of crude oil fell. Despite the better than expected data, the U.K. 3rd quarter GDP numbers could have also been weighing on the market. The unexpected drop of 0.4% in the British economy sent a surprise signal to the markets that a significant amount of risk still remains in the global economic recovery.
We have been seeing lots of selling action for crude oil at the price of $81.60. Concerning gold, traders may be wise to the $1068 ceiling. This resistance has yet to broken as the pair has made a few unsuccessful attempts at a breach and now trades near $1054.50.
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Tags: Crude Oil, Forex, Gold trading, spot Gold
