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Crude oil targets $100 as Gold hopes to follow

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Nick Goold

Gold

Last week, Gold was under pressure, mainly because the USD index rose to its highest point in six months. Also, the ongoing rise in the US 10-year interest rates is pushing down the prices of Gold, especially as the latest data shows the US economy is doing quite well.

Despite these challenges, people are still buying Gold. Many believe that the US Federal Reserve won't increase the official interest rates any further, which makes buyers comfortable to keep buying at lower prices and help keep the market stable. Gold easily held $1,900 support to close back above the 10-day moving average.

This week, the gold market will continue to feel the pressure due to the stronger USD and the possibility of higher long-term interest rates in the US. However, since the Federal Reserve is expected not to change official interest rates this week, sticking to a trading range between $1,900 and $1,946 seems to be the best plan for now.

XAUUSDDailySept16

Resistance: 1925, 1946, 1984, 2000

Support: 1900, 1893, 1870, 1830

WTI

WTI rose significantly last week, passing the $90 mark with ease. This rise is primarily due to ongoing production cuts in major oil-producing nations, Saudi Arabia and Russia, which have spurred a buying spree among speculators. Another factor fueling this price increase is the rebounding demand from China, the world's largest oil importer, signalling a bullish trend for oil prices.

In the midst of this, the International Energy Agency (IEA) raised a flag of caution. They warned that the production cuts initiated by the two OPEC+ leaders might lead to a "significant supply shortfall," indicating a severe gap between supply and demand. This scenario could cause prices to fluctuate wildly, making the market more unpredictable and potentially risking a steep price rise.

There's a growing buzz in the trading circles around WTI, with many anticipating its upward trend to continue growing strongly. Speculations are rife that it might even reach or surpass the $100 mark in the coming weeks. For those looking to jump on this upward trend, waiting for prices to return closer to the 10-day moving average could provide an opportunity to join the uptrend.

XTIUSDDailySept16

Resistance: 94.00, 100.00

Support: 85.00, 83.50, 78.50, 75.00, 70.00

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