Gold`s uptrend coming to an end or a short term reversal?
A massive week for the Gold market as surprising economic news resulted in large moves. The less-than-expected 0.25% rise in official US interest rates saw prices make a new high in 2023. A test of $2,000 looked likely until the much better-than-expected US employment figures saw massive selling enter the market.
Last week's strong US economic data has some traders changing their view of 2023. In addition, this week's speeches by US Fed officials could significantly impact Gold prices. In the short term, Gold is oversold and close to support, but a break of $1850 could result in further liquidation.
Gold is an attractive market to trade in due to the strong short-term and long-term trends, so traders should be careful trading against the trend. Friday's move was significant, breaking the recent uptrend, but it could be an overreaction to last week's news. Expect sideways movements this week as traders battle to see who will control the market.
Resistance: 1900, 1916, 1937, 1950, 1960, 1980, 2000
Support: 1860, 1845, 1820, 1800
WTI prices returned to the lows of 2023 as the strong US employment report raised fears of higher interest rates. Also of concern is the potential oil supply increases from Russia harming market sentiment.
The market is back near the year's lows, so it will likely hold support this week. However, should Fed officials surprise the market and express worries that interest rates will be at a quicker pace, WTI could fall below $70.
Resistance: 78.00, 80.00, 82.70, 84.00, 90.00
Support: 72.50, 70.00, 66.00