Nick Goold
Gold
Gold`s recent failure at key $1,984 resistance saw the market under pressure to start the week. Long-term US interest rates rose following the US Debt downgrade, which saw the selling pressure on Gold increase. Continued robust US economic data also hurt sentiment last week.
Friday`s US employment data was less than expected, which helped Gold push higher to end the week and recover above $1,938 support. The yield on 10-year US treasuries is now close to the 16-year-high last seen in October 2022, making Gold a less attractive investment.
The positive recovery on Friday could see Gold push marginally higher at the start of the week as traders wait for US inflation at the end of the week. Given how far the market has fallen over the past two weeks, expect buying to return and sideways price action as resistance remains at the 10-day moving average.
Resistance: 1984, 2000, 2032, 2050, 2080
Support: 1938, 1925, 1900, 1889, 1870, 1830
WTI
Another very positive week for WTI saw prices return close to 2023 highs as Saudi Arabia announced that it would extend its voluntary production cut through September at the end of the week. Earlier in the week, the US Government credit rating downgrade resulted in a sell-off as traders worried about negative impacts on demand as long-term US rates rose. Support held at the 10-day moving average encouraging traders to add to their long positions.
Significant resistance at $83.50 is now very close, so this will be a vital week for WTI. Ahead of US inflation data at the end of the week but with such a critical technical level so close, volatility should be high all week. Forecasting breaks can be difficult for short-term traders, so buying dips or selling a failed break above $83.50 looks best this week.
Resistance: 83.50, 90.00
Support: 75.00, 70.00, 67.00, 65.00, 64.00
