Gold refreshes intraday low after breaking the short-term ascending trend line. RSI isn’t yet oversold, suggesting further weakness in eyeing the monthly low. September’s bottom adds a filter to the downside below $1,850.
Gold prices inched lower on Thursday, as a firmer dollar and progress in COVID-19 vaccine developments offset concerns over spiking virus cases in the United States and hopes of more stimulus. After falling for five straight sessions, the dollar index was up 0.2%, making gold expensive for holders of other currencies. U.S. President-elect Joe Biden expressed hope on Wednesday that Republicans in the Congress would be more inclined to move forward on COVID-19 relief legislation after President Donald Trump leaves office in January. Gold, which tends to benefit from stimulus measures from central banks as it is considered a hedge against inflation and currency debasement, has gained about 23% this year. However, prices are on track for the second week of declines.
|Support & Resistance||Level||Explanation|
|Resistance 2||1878.49||Daily R2|
|Resistance 1||1871.50||Daily R1|
|Support 1||1852.86||Daily S1|
|Support 2||1845.87||Daily S2|
The WTI crude has carved out an expanding channel over the past two months. A close above that level would confirm a bullish breakout, validating the above-50 or bullish reading on the 14-day RSI and opening the doors to the August high of $43.78.
Oil futures eased on Thursday, surrendering some gains from the previous day as the surge in coronavirus cases and tighter economic restrictions around the globe stoked fears over slower fuel demand, outweighing upbeat vaccine news. The U.S. death toll from COVID-19 surpassed a grim new milestone of 250,000 lives lost on Wednesday, as New York City’s public school system, the nation’s largest, called a halt to in-classroom instruction, citing a jump in coronavirus infection rates. Worries about coronavirus-related economic damage overshadowed upbeat news from Pfizer and BioNTech that are seeking U.S. and European authorization for their COVID-19 vaccines next month. Boosting worries about oversupply, Libya’s National Oil Corporation and France’s Total discussed NOC’s efforts to raise capacity and increase production rates to the highest levels. Supporting prices, U.S. crude inventories rose 768,000 barrels last week, less than analyst expectations in a Reuters poll for a 1.7 million-barrel rise, government data showed. Distillate stockpiles, which include diesel and heating oil, fell by 5.2 million barrels, far exceeding expectations.
|Support & Resistance||Level||Explanation|
|Resistance 2||42.364||Daily R2|
|Resistance 1||42.067||Daily R1|
|Support 1||41.273||Daily S1|
|Support 2||40.976||Daily S2|
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