Gold (XAU)
Key news events today
No major news events.
What can we expect from Gold today?
The overnight price action in gold highlighted the temporary breakdown in negative correlation between this precious metal and the US dollar. However, the negative correlation appears to be coming to the forefront once again as gold prices stabilized around the $1,920/oz level this morning and look set to move higher should the DXY continue to fall today.
Next 24 Hours Bias
Weak Bullish
Technical
The XAU/USD chart currently displays a neutral overall momentum, suggesting a lack of a clear directional trend.
Price is anticipated to fluctuate within a range defined by the 1st support at 1913.49 and the 1st resistance at 1931.97.
The 1st support level at 1913.49 is considered significant, representing an overlap support and aligning with the 61.80% Fibonacci Retracement level, indicating potential price support.
Additionally, the 2nd support at 1901.55 is also marked as an overlap support and aligns with the 78.60% Fibonacci Retracement, further reinforcing its potential role as a support level.
On the resistance side, the 1st resistance at 1931.97 is identified as an overlap resistance, potentially acting as a barrier to significant upward price movements.
Furthermore, the 2nd resistance level at 1943.88 is noted as an overlap resistance, indicating another potential resistance area
Oil
Key news events today
OPEC Monthly Report (11:00 am GMT)
API Weekly Crude Oil Stock (8:30 pm GMT)
What can we expect from Oil today?
API and EIA oil inventories experienced larger than expected drawdowns last week which signal increased demand for this commodity in the US. Another higher-than-expected drawdown in API stockpiles is likely to keep crude prices buoyed, especially with Saud Arabia and Russia extending their respective production cuts till the end of the year.
Oil markets will also be focused on the upcoming monthly report from the Organization of Petroleum Exporting Countries (OPEC) which is due later today. The cartel is expected to offer more clues on oil supply, especially after the recent cuts by Saudi Arabia and Russia. Any forecasts on demand will also have an impact on crude prices. WTI oil hit a high of $87.60 per barrel overnight before pulling back slightly – it is now making another attempt towards this level as Asian markets come online.
Next 24 Hours Bias
Medium Bullish
Technical
The WTI chart currently exhibits an overall bullish momentum, indicating a potential upward trend in price movement.There is a possibility of a bullish breakout beyond the 1st resistance level with the potential to rise towards the 2nd resistance level.
The 1st resistance level at 87.15 is identified as an overlap resistance that aligns with a confluence of Fibonacci levels i.e. the 61.80% projection and the 161.80% extension levels. Furthermore, the 2nd resistance level at 89.26 is marked as an overlap resistance, indicating its potential significance as a barrier to further bullish movements.
To the downside, the Intermediate support level at 85.49 is identified as an overlap support that aligns with the 23.60% Fibonacci retracement level. The 1st support level at 84.06 is identified as a pullback support that aligns with the 38.20% Fibonacci retracement level.
Additionally, the 2nd support level at 81.67 is identified as an overlap support that aligns with the 61.80% Fibonacci retracement level, further reinforcing its potential role as a support level.
