Oil, gold and silver prices consolidate ahead of Fed rate decision
Outlook on Brent crude oil, gold and silver ahead of Wednesday evening’s Fed meeting.
Brent crude oil price consolidates below two-month high
The price of Brent crude oil has slid back from Monday’s 83.93 high on the front month futures contract with it dipping to 80.83 on Tuesday amid demand concerns, especially regarding China’s muted growth. China’s services growth hitting a four-month high has helped the oil price to rise again with it trading back above the 200-day simple moving average (SMA) at 81.45. An advance above Tuesday’s 82.83 high would put the mid-November high and this week’s high at 83.79 to 83.93 back on the plate. Upside pressure should be maintained while Tuesday’s low at 80.83 underpins on a daily chart closing basis. Below this low sits minor support at the mid-January 80.53 high.
Gold price rise runs out of steam ahead of FOMC meeting
Spot gold’s rise from its mid-January $2,002 per troy ounce low amid a stable US dollar has led to the precious metal oscillating around the 55-day simple moving average (SMA) at $2,030 for the past week. Tuesday's intraday high at $2,048 faltered slightly above the 19 January high at $2,039, both of which would need to be overcome on a daily chart closing basis for the 12 January high at $2,062 to be back in play. Unless such a bullish continuation takes place, the spot gold price is more likely to slip back towards the 55-day simple moving average (SMA) at $2,030 below which lies the November-to-January uptrend line at $2,020.
Silver price rise is abating
Spot silver’s ascent from its 22 January $21.93 per troy ounce low has taken it through its December-to-January downtrend line at $22.80 to Tuesday’s $23.30 peak before losing upside momentum ahead of today's US Federal Reserve (Fed) rate decision. If overcome, the 200- and 55-day simple moving averages (SMA) at $23.47 to $23.61 would be in focus. Potential slips should find support between Tuesday’s $22.94 low and the breached downtrend line at $22.80.
Related articles
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
