Gold (XAU)
Key news events today
FOMC Member Barr Speaks (1:00 pm GMT)
What can we expect from Gold today?
Federal Reserve Governor Michael Barr is due to participate in a moderated discussion at the Federal Reserve Bank of Philadelphia Seventh Annual Fintech Conference where he may drop clues on the upcoming FOMC meeting next week. His remarks could have a major impact on the direction of the DXY and thus drive gold prices as well.
Technical
The XAU/USD chart currently displays a bullish overall momentum, suggesting a potential upward trend in price movement. There’s a likelihood of a bullish continuation towards the first resistance.
The first support at 1913.49 is considered strong as it represents an overlap support and aligns with the 61.80% Fibonacci Retracement level, reinforcing its significance as a potential area of price support. Similarly, the second support at 1901.55 is also noted as an overlap support, aligning with the 78.60% Fibonacci Retracement, further enhancing its importance as a potential support zone.
On the resistance side, the first resistance at 1931.97 is marked as a pullback resistance and aligns with the 38.20% Fibonacci Retracement, making it noteworthy. The second resistance at 1943.88 is identified as an overlap resistance and aligns with the 78.60% Fibonacci Retracement, further enhancing its potential as a resistance level.
Oil
Key news events today
No major news events.
What can we expect from Oil today?
EIA Crude Oil Inventories (7th Sept)
The actual data for the EIA Crude Oil Inventories was -6.307M as compared to the forecast of -2.064M, which indicates a larger decrease in crude oil inventories. This means that there has been a more significant reduction in the stockpile of crude oil than what analysts had expected.
Although the most recent data indicated a larger-than-anticipated reduction in U.S. inventories during the week ending September 1st, analysts expressed doubts about the continuation of robust demand in the upcoming weeks, particularly with the conclusion of the travel-intensive summer season.
Crude prices fell 0.2% to $89.61 a barrel, while WTI oil fell 0.4% to $86.56 a barrel.
Technical
The WTI chart currently demonstrates a bearish overall momentum, indicating a potential downward trend in price movement.
There’s a likelihood of a bearish continuation towards the first support level at 84.05, which is identified as a pullback support.
Additionally, the second support at 81.64 is noted as an overlap support, suggesting that historical price action has found support in this area.
On the resistance side, the first resistance at 87.15 is marked as an overlap resistance and aligns with the 161.80% Fibonacci Projection, as well as the 61.80% Fibonacci Projection. This confluence of Fibonacci levels adds to its significance as a potential resistance zone.
Furthermore, the second resistance level at 89.26 is considered significant as it represents an overlap resistance, potentially acting as a barrier to any bullish movements in the WTI price.
