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The Hawkish Powell Speech may Be Weakening The Prices For Crude Oil And Gold

Published on: 09/5/18 7:33 AM

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Category: Currency, Forex, Latest News, Market, Trade, Trading, US News, World News

The Hawkish Powell Speech

According to the Hawkish Powell Speech, the prices for crude oil and gold may be weakening further. Prior to the Jackson Hole symposium, the United Stated dollar was gaining in strength as the process for commodifies dropped. The prices for gold are retreating from the resistance while the price for crude oil is stalling at the former level of support. The speech from Hawkish Fed Chair Powell may be responsible for keeping the pressure on the raw materials. On Thursday, there was a decrease in commodity prices after the gains of the last session. This was expected due to the gains resulting from the recovery of the United States dollar. This placed pressure on the assets denominated in accordance with the benchmark unit. The prices for perennially anti-fiat gold currently appear to be reflecting the recovery of the currency in a direct manner. Crude prices stalled and scored the biggest daily increase on Wednesday for the last two months.

Two-year Treasury bonds

There was an advance in greenbacks next to the yields from two-year Treasury bonds according to the price for the hike path of the interest rates for 2018 implied by the steepening of the Fed Funds futures. This move is most likely being positioned prior to the highly anticipated speech on Friday in Jackson Hole, Wyoming by Fed Chair Jerome Powell at the Economic Symposium for the central bank. This yearly gathering is generally used to reveal the guidance signaling the policy direction for the upcoming months. Jerome Powell is expected to talk about the intention of the Fed to continue with gradual rate hikes regarding the interest. This is despite President Trump’s admonitions and the potential to destabilize the spillover outside the borders of the United States.

Market jitters and more

There is a good chance the worries regarding market jitters, trade wars and a growing slowdown during the last six months of the year will re-emerge. This echo’s August’s minutes published earlier in the week from the FOMC meeting. The commitment of the policymakers was articulated to tightening. This was despite the headwinds with the potential to drive the price of commodities lower as gains for the United States dollar are extended. Beginning during the middle of June, the down trend was defined by the resistance of retreating gold prices. Support starts at the low of August 16th at 1160.37. The daily close is less than the target of 38.2 percent with the Fibonacci expansion currently at 1127.93. The breach and rebound is higher than the support-turned-resistance of 1204.59. This is in the target area of 1236.66-40.86. The stall in crude oil prices at support-turned-resistance has guided the uptrend since February. There is an opening for challenging the swing low support of 61.84 due to the opening of the zone.