The turmoil in the banking sector helped Gold surge above $2,000 on Monday. However, once the stop-loss orders above $2,000 finished and the buyout of Credit Suisse was confirmed fell quickly, forming a key reversal pattern on Monday. Further selling pushes prices back to the 10-day moving average support.
10-year US interest rates returned to the lows of 2023 as lower expectations as the Federal Reserve looks to support the banking sector. Lower interest rates make Gold a more attractive investment, so along with technical buying at the 10-day moving average, Gold tested $2,000 again at the end of the week.
The continued failure at $2,000 is concerning, but the uptrend remains strong, and worries about Deutsche Bank mean Gold will likely remain a popular investment in the short term. Range trading in the short term looks like the best strategy, and looking for lower in the medium term.
Resistance: 2000, 2010, 2070
Support: 1965, 1935, 1918, 1900, 1890, 1870, 1830
WTI spent the week recovering the recent losses as a weaker USD spurred buying, pushing prices back above $70. Resistance at the previous lows around $72.50 proved too much, though, as fears of a recession increased following the US Federal Reserve meeting.
The 10-day moving average is still pointing lower, and the failure of WTI to close above $70 is bearish. The USD remains under pressure which will provide support, so expect sideways to lower price action in the week ahead.
Resistance: 70.00, 71.50, 72.50, 75.00, 80.50, 82.50
Support: 65.00, 62.00, 57.00, 50.00