Crude oil inventories in the United States fell sharply last week, official data showed on Wednesday. According to the Energy Information Administration's weekly report, US crude stocks dropped 6.2 million barrels to a total of 504.6 million in the week ended September 16, compared to the preceding week's decline of 0.6 million barrels, while market analysts anticipated a rise of 3.2 million barrels in the reported week. The data also showed gasoline inventories decreased 3.2 million barrels, exceeding analysts' expectations for a 567,000 barrel fall, whereas distillate stocks added 2.2 million barrels, compared to the 250,000 increase forecast. On Tuesday, the American Petroleum Institute reported a 7.5 million drop in US crude oil inventories for the same week, surpassing the 3.4 million barrel fall market forecast.
Confidence among American shoppers rose unexpectedly to its highest level since the recession in September, official data revealed on Tuesday. According to the Conference Board, the Consumer Confidence Index (CCI) jumped to 104.1 in September, whereas market analysts expect it to come in at 98.6 in the reported period. Meanwhile, the preceding month's reading was revised up to 101.8 from the originally reported 101.1 points. The survey is a closely followed barometer of consumer attitudes towards business conditions, personal finances, jobs and short-term outlook. The data showed that 27.9% of respondents stated that jobs were plentiful in the ninth month of the year, following August's 26.8%. Furthermore, only 21.6% claimed that jobs were hard to find, compared to last month's 22.8%. The share of those expecting more jobs to be created in the upcoming months increased to 15.1% from last month's 14.4%, while the share of respondents expecting less jobs declined to 17.0% from August's 17.5%. The proportion of respondents expecting their incomes to worsen fell to 10.3% from 11.0% in the prior month. The US economy is mostly driven by consumer spending, which accounts for about 70% of all economic growth.
Upcoming fundamentals: US Core Durable Goods Orders
High impact data is bound to shake the markets on Wednesday afternoon, when the US Core Durable Goods Orders, Yellen's speech, as well as Crude Oil Inventory data comes out. Regarding the Durable goods announcement, -0.5 will be the figure defining a positive or negative surprise at 12:30 GMT, while Yellen's speech which takes place at 14:00, could cause the markets to behave unpredictably. US Crude Oil Inventory data comes out at 14:30 GMT as well.
XAU/USD up against 1317.98
Daily Chart: The three-month triangle proved its merit not only by limiting access to levels above 1339.61, but by causing a 1.1% dive right trough levels of significance to close at 1325.81. Opening with little volatility, Gold showed signs that an extension of the bear-trend might be on the way with some high impact fundamental data releases pushing the metal around against the Dollar on Wednesday. The lack of demand pressures in between opens the way to 1317.89, the bottom trend-line of the wedge, suggesting that the triangle has overpowered the senior wedge which could be mature enough to give in to the junior triangle.Traders show mixed expectations on the bullion
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of gold around 1,350 by December
Traders who were asked regarding their longer-term views on gold between August 28 and September 28 expect, on average, to see the metal around 1,350 by the end of December. Generally, 57% (-1%) of participants believe the price will be above 1,350 in ninety days. Alongside, 27% (+1%) of those surveyed reckon the price will trade in the range between 1,200 and 1,350 over the next three months