Commodities continue to present excellent trend trading opportunities
As expected in an uptrend, the 10-day moving average provided support last week. Continued USD weaknesses on lower US growth and inflation are encouraging buying. Also, worries about the US government reaching its debt are positive for gold prices.
No trend lasts forever, but prices will likely continue towards $2,000 over the coming weeks. Additionally, this week the release of the US GDP is important as a strong result could see Gold quickly fall.
Expect a quieter week for Gold as the market waits for the interest rate decision next week. As a result, this week's best strategy is range trading for short-term traders and waiting for a fall to buy for swing traders.
Resistance: 1937, 1950, 1980, 2000
Support: 1910, 1900, 1875, 1864, 1845, 1820
WTI continued to push higher last week on improved prospects for the Chinese economy as the COVID restrictions eased. In addition, expectations of smaller US interest rate increases in 2023 encourage speculative buying.
A break of resistance at 83.30 is becoming increasingly likely in the short term; it will be challenging to forecast the timing. However, trading a WTI breakout can be difficult due to high volatility, so buying ahead of a break of resistance close to a moving average could be a profitable strategy.
Resistance: 82.70, 84.00, 90.00
Support: 79.00, 77.00, 75.00, 70.00