Spot Gold pared most of its weekly losses Friday to close the week at 1,289.00 oz, as slow jobs growth in the US weakened the case for a US rate hike during the US Fed’s upcoming June meeting.
The precious Yellow metal is finding support on physical demand coming from India, due the annual wedding season.
Having has tapped the psych mark at 1,300 mark for the 1st time in over a year and is still in its overall Bull market, a clear break above the Key mark seem likely during the coming days.
In the daily, the Gold price continues developing well above a Bullish 20-Day SMA, and far from a daily ascendant trend line, currently at 1,245.00. In the same chart, the technical’s have recovered their Bullish slopes after a short lived Southside corrective movement within Bullish territory, all of which maintains the risk towards the Northside.
In the daily, the technical indicators have turned slightly lower within positive territory, indicating Gold can decline some before turning North again.
Support marks:1,286.40 1,274.45 1,266.80
Resistance marks: 1,290.60 1,303.65 1,312.50
WTI Crude Oil
WTI Crude Oil (NYSEArca:USO) prices sought direction last week, with WTI Crude finally ending lower at 44.56 bbl.
Friday, news showed that the number of US Oil rigs fell to its lowest since October 2009, down by 4 to 328 according to the Baker Hughes (BHI) report, and helped Black Gold recover some ground.
A wildfire in Canadian Oil Sands production coountry has supported the commodity, hit earlier in the week by news that OPEC’s output has grown and US stockpiles stand at record highs.
WTI Crude Oil is not far from the yearly highs posted in April at 46.75, but the daily shows that the Northside potential is fading, as the 20-Day SMA has turned flat at 43.50, while the Momentum indicator continues heading South, and points to break below 100.
In the 4 hours , the current technical stance is Neutral, as the indicators are hanging around their mid-lines, and the price is just above an also flat 20-Day SMA. Strong support comes at 42.50, and a clear break below it will signal more price erosion, down to 40.00 in the coming days.
Support marks: 43.50 42.90 42.50
Resistance marks:45.10 45.80 46.75
Have a terrific week.
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