Oil Trades Negatively Overnight, Pushing Price To $65.89/bbl
Again a mixed close on Wall St. as the markets await the FOMC rate decision and comments, Nasdaq outperformed up 0.57%. That sentiment carried through to the Asia Pacific area as the Nikkei 225 traded 0.36% higher and the ASX (-0.50%) and Shanghai Comp. (-0.74%) traded in a subdued fashion. Once again trade wars came back into play as the US said it was to release another set of tariffs on Chinese goods and this could hit the EU markets on the open.
On the balance, commodities traded in red overnight, the worst performers were tin and aluminium which both traded lower over 0.70%. The retracement in copper continues as the industrial metal heads toward the $3.20/lb level and the next line of support is seen at around $3.18/lb.
Overnight oil markets traded negatively after the weekly API Crude Oil Stock data produced a build of 0.833M vs an expected draw of 2.700M. Spot WTI now trades at $65.89/bbl with price action looking consolidatory.
Gold has not had the best time of late and today is really a day of reckoning for the precious metal. The Fed rate path will be hugely important for prices going forward as we are currently stuck in limbo. Keep an eye out for the consolidation low of $1282/oz and high of $1308/oz....