Gold remained active last week despite the Thanksgiving holidays in the United States. The break of the 10-day moving average saw traders sell as they forecasted an end to the recent uptrend. When markets are trending, a simple 10-day moving average helps traders find trend and reversal trades.
The USD remains weak as the US 10-year interest rate continues to fall, a positive development for Gold. Short-term, the prices might fall further, but a move back above the 10-day moving average would be a buy signal.
This week, Gold traders should follow Wednesday’s speech by US Fed chairman Powell for clues on future interest rates. If Powell indicates slower future interest rises, expect Gold to move higher, quickly. US unemployment figures will be released on Friday and present good short-term trading opportunities.
Resistance: 1761, 1770, 1786, 1800, 1806
Support: 1730, 1719, 1700, 1675, 1650
WTI held support last week as Saudi Arabia and Iran reaffirmed support of OPEC production cuts until the end of 2023. Traders were happy to buy ahead of support resulting in a quick move higher at the start of the week.
The price recovery was short-lived as the market worries about the strength of the Chinese economy due to an increase in COVID. Prices failed to surpass the down-trending 10-day moving average seeing the WTI end the week under pressure again.
While lower levels seem most likely at the moment, volatility is high, so there could be good buying opportunities if support holds. The simple and best advice in trending markets is to sell below the moving and buy above the 10-day moving average.
Resistance: 79.00, 82.00, 84.00, 90.
Support: 75.00, 73.00, 67.00