Gold prices continued to recover and crude oil prices traded lower alongside shares amid broad-based risk aversion, as expected. The US Dollar’s inability to brandish its safe-haven credentials against this backdrop suggests the underlying narrative is one of souring confidence in the so-called “Trump trade”.

Looking ahead, S&P 500 futures are pointing decidedly lower ahead of the opening bell on Wall Street, hinting that more of the same is ahead. A relatively thin US data docket seems unlikely to prove potent-enough to disrupt this dynamic, although weekly API inventories figures may inspire a near-term response.

GOLD TECHNICAL ANALYSIS – Gold prices are attempting to mount a recovery after an expected downturn found interim support. A daily close back above the $1200/oz figure opens the door for a test of the 38.2% Fibonacci retracement at 1219.20. Alternatively, a turn below the 14.6% Fib expansion at 1183.28 exposes 23.6% threshold at 1160.57.

CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices have moved a step closer to confirming a bearish Head and Shoulders (H&S) chart pattern with a move back below the 14.6% Fibonacci expansion at 52.59. Confirmation of the pattern needs a daily close below the 50.25-69 area (38.2% Fib retracement, January 10 low), which would subsequently expose the 50% level at 48.72. Alternatively, a move back above 52.59 – now recast as resistance – opens the door for a retest of the 23.6% expansion at 53.75.