Oil Soars, Gold Remains Stagnant Ahead of the NFP

After the conclusion of OPEC+ and the US currency staying weak, oil prices rebounded sharply throughout the course of the extended trading hours. Even still, when the inevitable happens, both Brent and WTI will have maintained favored, albeit loud, trading levels for this week, as investors race to find the vaguest of news items to justify intraday price swings.

Crude oil prices climbed overnight by 2.15 percent to USD 73.80 a barrel for Brent and 2.20 percent for WTI, respectively.  Prices for both futures in Asia are USD 73.00 and USD 69.80. Even though prices have fallen this week due to the 100-day moving average (DMA) of Brent oil, prices stay optimistic as long as the DMA holds. As a result of Hurricane Ida, WTI’s spectrum has been much choppier, but it appears to have established enough stability on its brief ventures to USD 67.00 this week.

BRENT/USD&WTI/USD CHART. Source: Tradingview.com

Next week, we’ll be able to contemplate the worldwide supply/demand ratio and its prospects for crude prices. In the meanwhile, we have to handle the publication of US Non-Farm Payrolls and a US holiday on Monday. Therefore, Brent crude is expected to trade in a USD 72.00-USD to 74.00 per barrel band prior to the report, whereas WTI is expected to scurry about USD 69.00-USD to 71.00 per barrel.

The Price of Gold Stays Flat

Recently, gold had another Sleepless in Seattle period, finishing at USD 1812.50 an ounce, practically flat. However, gold bulls ought to be alarmed. There has been some movement in U.S. rates, as well as a significant drop in the US dollar this week. What this means is that the V-shaped rebound pace in gold prices has slowed down, which confirms negative speculations.

AI Trading Robot

GOLD/USD PER OUNCE CHART. Source:Tradingview.com

In spite of remaining within striking distance of USD 1814.80 an ounce, as well as USD 1809.35 an ounce, gold is already arranged for a strong direction shift through to the conclusion of this week. In light of its failure to maintain a bullish trend, the negative possibilities are unbalanced. Unexpectedly high payroll numbers in the United States might send gold prices plummeting soon.

It appears that the USD 1820.00 and the USD 1830.00 to USD 1835.00 ounce zones are more than adequate for stifling recoveries at this point. Gold will challenge resistance at USD 1780.00 an ounce if it falls past USD 1800.00 an ounce. The price of gold might fall below USD 1750.00 per ounce if the situation worsens, as stagnant long positions are sent to slaughter.

Previous post BTC Prices Beats $50k Hurdle, US Employment Review Tanks Stocks
Next post An Official From Central Bank Of China Says Crypto Assets Do Not Have Actual Value