Oil and Gold Prices React to Global Economic Outlook and FOMC Decision

Oil
Gold

Oil

Crude prices are rising after the IMF raised their World GDP forecast from 2.8% to 3%. The outlook for global growth is the key for the crude demand outlook and right now it seems that might only get better as we get more stimulus out of China and as soft landing hopes grow for the US. WTI crude will likely face key resistance from the $80 level, which means the recent rally might consolidate until we get beyond the FOMC decision.

Gold

Gold prices are wavering ahead of the FOMC decision, slightly higher on the day as the $1950 level provides key support. Gold is going to wander around for the next 24 hours as nothing else really matters except the Fed. Massive earnings might provide a key catalyst for risk-appetite, so bullion traders might want to pay attention to what happens to Microsoft and Alphabet earnings.

Ed Moya

With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.

Topics

FED china gold prices microsoft alphabet earnings fomc decision wti crude imf forecast support level risk appetite stimulus key resistance crude prices global growth outlook Soft Landing Hopes World GDP

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Oil

Gold

Ed Moya

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