Oil rises slightly, gold falls but recovers

Oil edges higher

Oil prices edged higher overnight thanks to larger than expected falls in US crude and gasoline inventories and receding virus nerves. Brent crude tested USD 80.00 a barrel intraday but finished the session 0.25% higher at USD 79.35. Crude inventories pushed WTI 0.75% higher to USD 76.60 a barrel. Asia has been modestly positive, lifting Brent and WTI 0.30% higher to USD 79.50 and USD 76.80 a barrel, respectively.

Brent crude has support at USD 78.15 and then USD 77.30 a barrel, its 100-day moving average (DMA). It has resistance at USD 80.00 a barrel, where it failed once again overnight.  WTI has support at USD 75.40 and then USD 74.45, its 100-DMA. It has resistance at USD 77.50 a barrel, near to its overnight high.

Gold flops and recovers

Gold showed, once again, how frail bullish sentiment is as recent long positions were stopped out overnight, gold falling 26 dollars an ounce intraday to USD 1789.50 before a weaker US dollar led to an incipient recovery to USD 1801.00 in Asia today.

Gold’s attempts to stage a meaningful recovery remain unconvincing, with traders cutting long positions at the very first sign of trouble intra-day. It cleared the double top around the USD 1815.00 region but stalled just above at USD 1820.00. It faces resistance also at USD 1840.00 an ounce.  Support lies at USD 1790.00, followed by USD 1780.00 an ounce. USD 1790.00 to USD 1815.00 continues to be my call for the range for the week.

With the US dollar looking more vulnerable to positive virus sentiment now, gold could potentially move higher throughout this week, but I still doubt it could sustain those gains. Traders should stay nimble.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.