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Gold fails at resistance as WTI looks bullish

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Nick Goold

Gold

Gold found support around the 10-day moving average at the start of the week as the recent uptrend continued. The Federal Reserve raised interest rates as expected, and there were no surprises from the Chairman's comments, so buyers pushed prices back to resistance at $1,983 from earlier in July.

Stronger than expected US GDP, Durable Goods, and Jobless claims data Thursday saw the USD surge and Gold fall $30 in an hour as range traders sold aggressively. Support returned Friday, confirming the $1,945/$1,983 range as longer-term traders buy, targetting $2,000 as it looks like the Federal Reserve has finished raising interest rates for 2023.

The recent Gold volatility presents many trading opportunities and should continue in the week ahead. The market will likely trade sideways to higher at the start of the week as the 10-day moving average points sideways. US payrolls on Friday will be the focus and could help decide whether the market can continue to $2,000 in August.

XAUUSD Daily chart July 29

Resistance: 1984, 2000, 2032, 2050, 2080

Support: 1945, 1938, 1900, 1889, 1870, 1830

WTI

A very positive week for WTI prices as the market easily moved higher on hopes of further stimulus from the Chinese government. There is talk that the Chinese are building up their stockpiles, which will continue. Conversely, Russia could be looking to increase exports in September, reversing the recent trend of lower exports.

The rise in official US interest had little impact on WTI, but the robust US data at the end of the week increased speculators' appetite to buy WTI. The technical outlook is strong in both the short and medium term for WTI now prices have moved significantly above the 200-day moving average. In the week ahead, the best strategy looks to be waiting for the market to return closer to the 10-day moving average to buy WTI.

XTIUSD daily chart July 29

Resistance: 83.50, 90.00

Support: 75.00, 70.00, 67.00, 65.00, 64.00

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