Oil stable, gold loses ground

Oil prices are steady

Brent crude and WTI were steady once again overnight, with US official crude inventory data having little impact on prices, although the rise in gasoline inventories by 3.5 million barrels may have capped prices intraday. European gas concerns look to be supporting the downside for now. Another factor behind the lack of volatility could be that volatility in July has bordered on the absurd at times, and that may have prompted traders to move to the sidelines.

Brent crude has edged 0.40% lower to USD 106.05 a barrel in Asia, with WTI moving 0.90% lower to USD 98.90 a barrel on futures markets. Brent crude has well-denoted resistance at USD 108.00 a barrel on the charts and then USD 111.00. It has support at USD 104.00 and USD 101.00 a barrel, and then USD 97.50, the 200-DMA. WTI has support at USD 98.25 and USD 96.00 a barrel, followed by USD 94.30, its 200 DMA. Resistance is at USD 100.00, followed by USD 104.00 a barrel.

Gold’s moment of truth draws near

If any asset class yells that the risk sentiment rally could be a very false dawn, it is gold. Having completely failed to rally on material US dollar weakness this week, it has edged even lower to longer-term support overnight and this morning. To say that gold’s price action is underwhelming is an understatement, and it appears to be facing imminent material downside risks if the technical picture is to be believed.

Gold fell by 0.86% to USD 1697.00 overnight, easing by another 0.30% to USD 1691.00 an ounce in Asia this morning. ​ It is now just above longer-term support around the USD 1675.00 an ounce zone. A sustained failure of USD 1675.00 will signal a much deeper move, targeting the USD 1450.00 to USD 1500.00 an ounce regions. Gold has resistance nearby at USD 1720.00, then USD 1745.00, now a triple top.

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