Nick Goold
Gold
Gold maintained its recent upward momentum last week, surpassing the $1925 mark. This surge was due to traders' predictions that there would be no additional official interest rate hikes in 2023. Such forecasts have weakened USD, making gold increasingly appealing as an investment option.
Gold experienced an initial rise following the release of weaker-than-expected U.S. employment data. However, the resistance level at $1946 capped further gains, with traders opting to take profits as the week drew to a close.
Friday's failure above resistance sparked concern among traders. Given the upcoming week's limited economic data releases and the U.S. holiday on Monday, traders will likely proceed with caution. Should the market remain below the $1946 resistance, a dip towards the $1925 level could offer a promising medium-term buying opportunity.
Resistance: 1946, 1984, 2000
Support: 1925, 1900, 1893, 1870, 1830
WTI
WTI soared past the $83 resistance last week, driven by expectations that OPEC+, with Saudi Arabia at the helm, will extend production cuts through 2023. Further supporting this surge, Deputy Prime Minister Alexander Novak confirmed on Thursday that Russia, the world's second-largest oil exporter, has agreed with OPEC+ to reduce exports next month.
The buying trend in the oil market has also been buoyed by a weaker USD, amplifying demand. In the United States, the thirst for oil remains pronounced. Surveys from the U.S. Energy Information Administration reveal that commercial crude inventories have seen a decline in five of the last six weeks, highlighting the nation's robust appetite for the commodity.
WTI presents a positive outlook currently; however, the large gap from the 10-day moving average suggest potential risks for short-term traders considering buying at these levels. For them, a more prudent strategy might be to wait and join the uptrend closer to the $83 mark. In a medium-term perspective, the market exudes optimism and is now setting its sights on the $90 target.
Resistance: 90.00, 94.00, 100.00
Support: 83.50, 78.50, 75.00, 70.00
