Crude Oil Prices May Fall As Gold Gains Amid Risk Aversion

Crude oil and gold prices found little impetus for trend development over the past 24 hours, languishing within familiar congestion ranges. Top-tier scheduled event risk is notably absent through the week-end, hinting that sentiment trends may emerge as the central driver of performance.

FTSE 100 and S&P 500 futures are pointing lower, before London and New York come online, hinting at a risk-off mood. That might boost gold as capital seek haven in Treasury bonds and weighs on yields, boosting the relative appeal of anti-fiat assets. Sentiment-sensitive oil prices may lose ground, however.

GOLD TECHNICAL ANALYSIS – Gold prices remain wedged within a would-be bearish Triangle chart pattern. A daily close below its lower boundary and the 38.2% Fibonacci expansion at 1272.01 sees the next downside barrier in the 1260.80-61.50 area (October 6 low, 50% level). Alternatively, a move above Triangle resistance – now at 1293.13– exposes the October 16 high at 1306.04.

CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices continue to mark time near the 23.6% Fibonacci retracement at 55.01. A daily close below that exposes the 38.2% level at 53.21. Alternatively, a reversal back above the 14.6% Fib at 56.12 opens the door for a retest of the November 8 high at 57.92.