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Gold prices steady above the 1800 level


The precious metal retreated after rising to a fresh nine year high of 1817.79 last week. Price action is however looking to recover from the modest losses after posting this new high. The market sentiment remains mixed with the equity markets also trading in the positive. Ahead of the key central bank meetings this week, gold prices might be looking for further cues.

For the moment, the previous highs near 1817.79 remain a key level of interest. A breakout above this level could potentially confirm further gains to come. The next main target remains at the 1850 level. However, given that gold prices have not posted any short term support to the downside, the gains might be at risk.

To the downside, a close below Tuesday's lows of 1790.28 could confirm some near term declines. Price action is likely to test the lower support area near 1730. The 50-day moving average might also chip in as support to prevent gold prices from posting further declines.

Crude oil steady as OPEC+ meeting gets underway

WTI 1507

Crude oil rose a modest 2% intraday on Tuesday as OPEC member nations and Russia began their meeting on Tuesday. Production cuts remain the biggest topic. Markets estimate that OPEC+ will cut production a further 2 million barrels per day starting from August. This move is expected to further stabilize the oil markets.

The current holding pattern in WTI Crude oil suggests that investors are pricing in for a production cut. A larger than expected cut could potentially drive oil prices higher. For the moment, the price action is holding steady near the 40.85 level, unable to make a clear break above this level.

The 200-day moving average is also acting as a strong resistance at the moment alongside the price level of 42.00 which is a major resistance area. A string breakout above this level is needed for oil prices to post further gains. To the downside, any declines will stall near the 37.50 level of support.

Euro jumps higher ahead of ECB meeting


The euro currency is rising over 0.5% intraday ahead of the key ECB meeting due this Thursday. Price action is now posting gains for three consecutive daily sessions. At the time of writing, the EURUSD is trading above the 1.1374 close from 10th June. A strong close above this level might suggest further gains.

The next main upside target for the EURUSD is at the 1.1400 level. We could expect price action to potentially close out near this level ahead of a potential decline. Any short term corrections might be limited to the 1.1300 level of support.

However, in case the EURUSD fails to stall near 1.1300 then we expect a stronger declines lower. This could mean that the common currency might slip toward the 1.1147 level support is still pending a retest

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