Crude oil prices fall with stocks threatened by Trump China tariff threat

POINTS FOR DISCUSSION OF RAW OIL AND GOLD:

• Crude oil prices dropped with stocks on the escalating US-Chinese trade war
• Trump has threatened to raise China's import tariffs here by the weekend
• The deployment of a US carrier will check Iran and euro area PMI data are expected

Crude oil prices fall alongside futures on the S & P 500 Index and Asia-Pacific stock exchanges at the start of the trading week signs of escalation of the Chinese-Chinese trade war sour feeling of the market. Gold Prices rose slightly as the defensive climate weighed on bond yields, but the rally quickly stagnated, with shelter demand supporting the US dollar, undermining the appeal of anti-fiat alternatives.

In the future, risk trends should overshadow a discrete offer on the economic data front. A revised set of April PMI of the euro area the data at the top of the list and should confirm the rapid estimates that growth in the manufacturing and services sectors slowed after a slight increase in March. Such a result risks dissolving into a broader risk dynamic.

Geopolitical complications can lead to muddy prices for crude oil after the The United States has deployed an aircraft strike group in the Middle East to counter any potential aggression Iran. National Security Advisor John Bolton said the decision was aimed at telling Tehran thatny attack on WE his interests or allies will come up against a "relentless strength". Washington is expected to hit Iran with additional penalties in a week.

To see the latest forecasts for gold and crude oil to find out what will drive prices in the second quarter!

TECHNICAL ANALYSIS GOLD

Gold prices continue to oscillate above support in the 1260.80-63.76 zone. A break below this barrier, confirmed each day at closing, would reverse the upward trend seen from mid-August 2018, initially exposing the next downward barrier in 1235.11-38.00. The immediate resistance crosses 1295.37, with a break above that targeting the region 1303.70-09.12.

TECHNICAL ANALYSIS OF GROSS OIL

Crude oil prices fell to test the minor support at 60.39. A break below the one confirmed at the daily closeout targets the next zone 57.24-88. A dense layer of resistance extends up to 67.03. Going back over this barrier opens the door to another challenge of $ 70 / barrel.

COMMERCIAL RESOURCES ON GOODS

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter