Gold volatility increased significantly last week as prices surged higher, boosted by a fall in 10-year US interest rates on US economic recession concerns. In addition, continued fear about the strength of regional US banks also encouraged buyers of buyers.
The stronger-than-expected March US payroll figures saw large long liquidation back to the critical $2,000 level. So despite Gold looking like it could move lower recently, many traders are still keen to push prices higher.
Despite the rise last week, the technical indicators still point sideways, and the failure to remain above $2,050 is a bearish sign. Expect another week of large moves but sideways price action is likely as the market waits for US inflation data releases on Wednesday and Thursday. While the direction of Gold in the short term is difficult, there are many good intra-day opportunities when using a 1-minute or 5-minute chart.
Resistance: 2032, 2050, 2080
Support: 2000, 1973, 1950, 1935, 1918, 1900
Oil traders were stunned on Thursday as the market crashed before the opening in Asia as algo traders flooded the market with sell orders. WTI had been under pressure all week as increased fear of a US recession weakened the outlook for demand. However, like Gold, WTI prices can exhibit stronger trends than other markets as they are more speculative than foreign exchange and equity markets.
Friday, the market corrected the panic selling to reclaim the $70 mark as traders looked to buy ahead of the yearly low. The technical indicators remain bearish, and the downtrend momentum is strong, but given how quickly the market recovered from the yearly low, expect buyers to prevent significant falls. Nevertheless, this week the market might be due a period of reflection, so expect range trading around $70 this week.
Resistance: 75.00, 79.00, 82.50
Support: 65.00, 64.00, 62.00