Talking Points:

• Crude oil prices follow stocks higher as risk appetite firms
• Gold prices gap lower as FBI clears Clinton in email case
• US presidential election set to fully dominate the spotlight

Crude oil prices advanced alongside shares and gold prices plunged as risk appetite firmed across financial markets at the start of the trading week. The collective mood brightened after the FBI affirmed Hillary Clinton did not a commit a crime in her handling of emails while serving as Secretary of State. Investigators had rattled traders by resuming inquiry into the case just 11 days before this week’s election having seemingly put it to rest back in July.

Futures tracking key European and US stock benchmarks are pointing firmly higher, hinting that risk-on dynamics are likely to carry forward in the hours ahead. A relatively quiet economic data docket will probably help in this regard. Election-related headline risk remains a critical consideration however, with knee-jerk volatility a significant concern as markets weigh up the impact of recent developments on opinion polls heading into voting day on Tuesday.

 GOLD TECHNICAL ANALYSIS – Gold prices have challenged the $1300/oz figure once again. A break above the 1303.62-08.30 area (May 2 high, 38.2% Fibonacci expansion) on a daily closing basis targets the 50% level at 1329.01. Alternatively, a move back below the 23.6% Fib at 1282.68 exposes rising trend line support at 1269.48.

CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices fell for a sixth consecutive day, the longest losing streak in almost four months. A daily close below the 61.8% Fibonacci retracement at 44.04 targets the 42.18-43.02 area (76.4% level, support shelf).Alternatively, a move back above the 50% Fib at 45.54 exposes the 38.2% retracementat 47.04.