Gold and Crude Oil Outlook
$GLD, $USO, $OIL
Gold remains weak.
The technical’s confirms a longer consolidation phase. 1sy upport lies at 1251 (08/08/2017 high). Key resistance now located at 1288.
Long-term, the technical’s suggests that there is some growing upside momentum. A clear break of 1392 is necessary ton confirm, a major support can be found at 1045, the February 2010 low.
WTI Cude Oil extends consolidation into 2nd day, holding around 57.00 handle after hitting a 2 year high at 57.67 Tuesday.
Stronger pullback cannot be ruled out as the precious Yellow metal is strongly overbought.
A dip below 57.00 could stretch towards next solid support at 55.16 which is expected to contain.
“Sentiment remains positive on expectations of output cut program extension and rising tensions in the Middle East, which so far offsets negative impact from Chinese crude imports which fell to the lowest level in a year.”
Release of API Crude stocks report Wednesday disappointed on 1.6-M bbl draw, which was well below forecast 2.5-M draw.
Traders are eyeing Thursday’s release of US EIA weekly Crude stocks which are forecast for 2.8-M bbl draw in the past week, which could further support the price on results at or above the forecast number.