Crude oil prices edged higher on Thursday despite the current unrest in the Middle East while Saudi Arabia’s plan to cut crude exports lifted sentiment.
The reports of Saudi’s plan to reduce exports came as investor fears grew of instability in the Middle East after Saudi Arabia warned its citizens not to travel to Lebanon and urged the international community to impose fresh sanctions on Iran.
The escalating tensions between Saudi Arabia and Iran come after Saudi Arabia’s crown prince Mohammed bin Salman accused Iran of “direct military aggression” by supplying Houthi rebels in Yemen with missiles, one of which was fired towards the Riyadh on Saturday.
Crude oil 4Hr technical chart has formed “Ascending broadening wedge” pattern. The previous few sessions has consolidated inside the channel. As per the technical aspects, market is expected to retest the channel’s support level in the upcoming session and turn to bullish momentum and the rally could extend to $57.50-58(3746- 3778) levels. Support holds near $56.50(3680).
Gold prices settled higher on Thursday recording three-week despite a fall in the dollar on worries that the Senate would delay corporate tax cuts from 35% to 20% until 2019.
The reports of a possible delay to corporate tax cuts halted recent risk-on sentiment, as traders appeared to unwind their bullish bets on riskier assets which followed on expectations that President Trump’s tax-reform plans would be enacted before year-end.
The current political unrest in the Middle East after Saudi Arabia advised citizens not to travel to Lebanon and urged the international community to impose fresh sanctions on Iran.
Gold 4Hr technical chart has formed “Rounded bottom” chart pattern. The last few sessions has been a sideway but bullish. It has consolidated at every momentum in breaking the resistance. Market is expected to continue on bullish momentum breaking all possible resistances in the upcoming session till it breaks a short resistance level holding at $1290.