Nick Goold
Gold
This past week, the gold market has experienced a consolidation phase, with the price oscillating around the 10-day moving average. The $2,000 mark has acted as a formidable resistance, restraining gold from realizing further price advances. This stagnation comes despite the ongoing military engagement between Israel and Hamas; yet, the conflict, being localized within Gaza's borders, has not escalated to a degree that would significantly disturb the broader geopolitical climate in the Middle East and push gold prices higher.
The United States reported disappointing job growth, a development that typically would send investors flocking to the safety of gold. This news drove a spike in gold prices, propelling them momentarily past the $2,000 barrier, but the upswing was fleeting. A dip in long-term U.S. interest rates was bullish for gold, but now some market analysts are signalling the possibility that gold's recent bullish run may be tapering off.
The gold uptrend remains intact as prices remain above the 10-day moving average, but it is difficult to buy at these levels. Nonetheless, for those considering shorting the market, the advice is to wait for a clear signal. Should the price of gold break below its 10-day moving average, it could indicate a potential reversal of the current uptrend.
Resistance: 2000, 2050, 2070, 2080
Support: 1984, 1946, 1900, 1884, 1836, 1809
WTI
WTI had a tough week, with prices falling by 6%. Investors are worried about the world's economy slowing down, which could mean less oil is needed. Even though there are ongoing tensions in Gaza, oil has kept flowing without significant problems, so the risk premium fell. This situation has led some traders to sell, especially as economic reports from China have not been promising for oil demand.
Adding to the worries about WTI, a report from the Energy Information Administration (EIA) in the U.S. showed that there is more oil and gasoline stored up than people expected. When there's more supply than demand, prices usually go down, so this news adds more reasons for prices to keep dropping.
For the coming week, the pressure on WTI prices might not let up, especially as large traders continue to aim for a push below $80. A strategy that might make sense for traders this week could be to sell when the price gets close to the 10-day moving average. Alternatively, waiting for a significant drop below support and taking advantage of oversold conditions to buy the market could be a profitable strategy.
Resistance: 85.10, 88.50, 94.00, 100.00
Support: 80.00, 78.50, 75.00, 70.00
