Commodities Daily - October 22, 2019

> Oil prices inch lower despite growing US-China trade deal optimism. Today, the UK Parliament is scheduled to vote in the evening on bills to approve the government's Brexit plan and to set a swift time frame to implement said plan before the end of the month. Data-wise, the US's existing home sales and Richmond Fed survey are due. API oil inventories will be reported overnight. We doubt that Brent will extend its recent downtrend today and see strong technical support at $58.3/bbl and $58.0/bbl.> Gold prices slide on stronger risk appetite; Brexit vote in focus today. As we write, gold prices are paring back yesterday's losses, trading just short of the $1,490/oz mark, though in our view the risks are still skewed to the downside given the high chances of Boris Johnson getting the first stage of a withdrawal bill through Parliament today. The latest technical analysis from Reuters suggests that gold is biased to fall toward $1,456/oz, as suggested by a falling channel that started to develop in early September. We think that gold is likely to sink to as low as $1,480/oz later in the day.