Gold and WTI Crude Oil Technical’s (Daily)
Gold: Spot Gold fell to 1,335.15 oz as an initial reaction to the Headline Only strong US NFPs, but close analysis led to strong demand for the safe- haven assets driving it back higher, with the precious Yellow metal ending the week at 1366.50, not far from the 2 year + high set at 1,375.11 earlier last week.
Speculation that the Fed will remain on hold this year, alongside with the backdrop of negative interest rates in many developed economies, have kept Gold running strong, and will likely persist during the weeks ahead.
On a daily basis, the Momentum indicator maintains a strong upward slope, while the RSI consolidates in overbought levels, and the 20-Day SMA heads sharply higher well below the current mark, supporting some further advances in the coming sessions.
In the 4 hours, the price briefly fell below a Bullish 20-Day SMA, but now stands above it, as the RSI indicator heads North around 60 and the Momentum indicator turned higher, but remains within Bearish territory, also supporting some further gains, particularly on a break above the mentioned high, now the 1st resistance.
Support marks: 1,358.40 1,351.90 1,338.10
Resistance marks:1,375.10 1,383.90 1,392.40
WTI Crude Oil: Crude Oil prices consolidated their latest losses Friday, with WTI Crude Oil diving 7% Thursday, on news that US stockpiles fell less than expected.
A stronger USD after the US employment report kept the commodity subdued, with WTI Crude Oil ending the week at 45.12 bbl.
Adding to the Bearish case for Crude Oil, was the Baker Hughes (NYSE:BHI) report, showing that weekly number of active US rigs rose by 10 to 351, up by the 5th time in the past 6 weeks.
Holding at its lowest mark since early May, the daily for US Crude Oil shows that the price is pressuring a Bullish 100-Day MA, and below a Bearish 20-Day MA, and the technical indicators have lost their Southward strength, but remain within negative territory, indicating that the downward risk persists in here.
In the 4 hours, the 20-Day SMA heads sharply lower around 46.30, while the Momentum indicator turned south within negative territory and the RSI indicator consolidates around 35, all of which favors further declines on renewed selling pressure below the 45.00 mark.
Support marks: 44.90 44.20 43.55
Resistance marks: 45.80 46.30 47.10
Have a terrific week.
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