FX Careers

Asia – Commodities Fundamental Forecast | 19 October 2023

Gold (XAU)

Key news events today

Unemployment Claims (12:30 pm GMT)

Fed Chair Powell Speaks (4:00 pm GMT)

What can we expect from Gold today?

Unemployment claims in the US have been trending lower over the past six weeks out of nine which signal a robust labour market. However, claims have started to trend higher over the last three weeks but readings have been coming in lower than their respective estimates over this period. Lower-than-expected claims will usually function as a bullish catalyst for the US dollar and thus drive gold prices lower.

Meanwhile, Federal Reserve Chairman Jerome Powell is due to speak at the Economic Club of New York Luncheon where he could also sing a similar tune as Federal Reserve Governor Christopher Waller, where his overnight remarks were neutral and added downward pressure on the dollar, resulting in higher gold prices.

Next 24 Hours Bias

Medium Bullish


Key news events today

No major news events.

What can we expect from Oil today?

EIA crude oil inventories experienced a larger-than-expected drawdown as nearly 4.5M barrels of crude were drawn versus the estimate of just 300k – this indicates that US demand was strong last week. However, this data point did not boost prices as WTI oil fell below $87.00 per barrel. Prices for WTI could continue to slide lower where it may potentially find support around the $86.00-level today.

Next 24 Hours Bias

Weak Bearish