Oil prices stall at 2.5-year highs, gold eyes Fedspeak

Benchmark commodity prices have made little progress since setting prominent highs mid last week.

Crude oil prices will look to the weekly API inventories report as well as the short-term outlook report from the EIA for their next lead. Meanwhile, gold prices may face a bit of selling pressure if upbeat remarks from Fed officials highlight the disparity between officials’ rate hike outlook and that of the markets.

Gold prices have stalled a bit after touching a four-month high last week. Negative RSI divergence warns that the pause may translate into a larger reversal lower as upside momentum fizzles. A reversal back belowthe 50% Fibonacci expansion at 1312.90 opens the door for another challenge of the 38.2% level at 1294.91. Alternatively, a breach of the 61.8% Fibat 1330.89 targets the 1353.15-57.50 area (76.4% Fib, September 8 high) next.

Crude oil prices are consolidating gains after hitting the highest level since May 2015. From here, a daily close above the 38.2% Fibonacci expansion at 62.31 exposes the 50% level 64.32. Alternatively, a reversal back below the 23.6% Fib at 59.83 paves the way for a retest of the 14.6% expansionat 58.30.