A Technical Look At Gold & WTI Crude Oil (Weekly)
$GLD, $USO
Gold
Gold prices slipped to their lowest marks in about a month last week, with spot Gold down to 1,212.26, on Hawkish comments from US Fed’s officers, pledging that the central bank will remain on the rate tightening path.
Despite the limited activity seen Friday, the commodity extended its weekly decline, posting a lower high and a lower low, and leaving the way clear for further declines near term.
The precious Yellow metal has been sensitive to the US Central Bank´s announcements for over a year now, and more jawboning alongside with steady USD strength should lead to a deeper Bearish move this week, particularly as the US will release its CPE data this Monday, and the NFPs report Friday.
The technical picture
The Gold price has accelerated its decline after breaking below a now flat 20-Day MA. The technical indicators have lost their Bearish steam near oversold marks, but keep pushing lower.
In the 4 hours, spot God is set to continue falling given that the 20-Day MA has extended below its 100 and 200-Day MA’s, while the technical indicators hang near oversold readings, with limited Bearish slopes.
Support marks: 1,212.30 1,203.50 1,190.90
Resistance marks: 1,225.50 1,233.40 1,245.60
WTI Crude Oil
WTI Crude Oil prices, but reversed course in quiet European trading and closed Friday flat. WTI Crude futures traded as low as 38.32 bbl before closing the week at 39.50.
According to the latest data, in countries like Russia, Canada and Mexico the net Crude Oil production is declining by 220,000 BPD, compared to a decline of just 50,000 BPD estimated.
That news, along with the latest US Baker Hughes (NYSE:BHI) report showing that US drilling rigs fell by 15 last week, may help Black Gold to extend its advance closer to 50.00 bbl, in spite of the Buck’s strength, maybe not.
The daily for WTI Crude shows that it met buying interest on a test of a sharply Bullish 20-Day MA, as the technical indicators turned up from near their mid-lines, after correcting overbought readings.
In the 4 hours, the technical indicators have also corrected oversold conditions, but lack directional strength within negative territory, while the price remains below a Bearish 20-Day MA, indicating limited upwardness as long as the price remains below the Key 40.00 bbl mark.
Support marks: 39.10 38.30 37.60
Resistance marks: 39.90 40.40 41.10
Have a terrific week.
HeffX-LTN
Paul Ebeling
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