Gold (XAU)
Key news events today
FOMC Statement (6:00 pm GMT)
FOMC Press Conference (6:30 pm GMT)
What can we expect from Gold today?
The Federal Reserve is widely expected to keep the Fed Funds Rate on hold at 5.50% at September’s FOMC meeting. Despite this expected ‘pause’ in rate hikes, the DXY has made strong gains recently. The press conference will also be closely watched as Chairman Jerome Powell could still jawbone the US dollar higher with any hawkish outlook or remarks regarding monetary policy. Thus, gold prices could come under pressure during the US session.
Next 24 Hours Bias
Weak Bullish
Technical
The XAU/USD chart currently exhibits a bullish overall momentum, presenting a potential scenario where the price may experience a bullish bounce upon reaching the 1st support level at 1929.57 and subsequently advance towards the 1st resistance at 1937.47.
The 1st support at 1929.57 is considered significant, characterized as an overlap support, and it carries historical relevance as a potential strong support zone. Additionally, the 2nd support at 1915.38 is identified as an overlap support and aligns with the presence of the 61.80% Fibonacci Retracement, further emphasizing its role as a key support level.
On the resistance side, the 1st resistance at 1937.47 plays a pivotal role, categorized as a swing high resistance and associated with the 127.20% Fibonacci Extension, indicating its potential as a point of resistance. Beyond the 1st resistance, the 2nd resistance at 1946.58 is also characterized as an overlap resistance, further highlighting its significance.
Oil
Key news events today
EIA Crude Oil Inventories (2:30 pm GMT)
What can we expect from Oil today?
API stockpiles resumed the drawdown as 5.3M barrels were removed from storage which was higher than the estimate of a 2.7M drawdown, signalling a stronger-than-expected demand in the US. EIA inventories are also expecting a drawdown of 1.3M barrels and another stronger than expected reading could provide another boost for crude oil. WTI oil pulled back quite sharply overnight to fall under the $90-mark but prices could resume the uptrend as supply remains tight.
Next 24 Hours Bias
Weak Bullish
Technical
The WTI (West Texas Intermediate) chart currently exhibits a weak bullish momentum with low confidence. The short-term price action could involve a drop towards the 1st support level before potentially bouncing off this support to climb higher.
The 1st support level at 88.77 is identified as an overlap support that aligns with the 23.60% Fibonacci retracement level while the 2nd support level at 87.49 is also marked as an overlap support.
To the upside, the 1st resistance level at 92.09 is identified as a recent swing-high resistance. Further up, the 2nd resistance level at 94.51 is noted as a resistance that aligns with the 100.00% Fibonacci projection level.
