Oil Seeps as Gold Rallies

Crude oil traded sideways overnight while gold’s rally continued, with volatility dampened by a U.S. and Japan holiday.


Crude prices finished broadly unchanged overnight with a U.S. holiday meaning New York trading was subdued. Both Brent and WTI took some solace by comments from the OPEC Secretary-General that they were working to create an extension to the production cut deal ahead of the November OPEC meeting.

The comments only temporarily shook crude from its malaise with the rally quickly running out of steam with Brent and WTI closing at 55.80 and 49.40 respectively. Both contracts retain a consolidative look about them near the lows of last week’s trading range, suggesting both are still vulnerable to downside pressure.

Brent trades at 55.95 with support at 55.15 and 54.15 its long-term support line. Resistance is nearby at 56.10 before the double top at 57.35.

Brent Daily

WTI trades at 49.50, just above its 200-day moving average at 49.20, the next support being 48.80. Resistance is at 50.50 and then 51.00.

WTI Daily



Gold’s recovery continued overnight, powering higher by nine dollars to close in New York at 1284.00. With the U.S. session holiday thinned, trading volumes were light, but gold continues to be supported by the ratcheting higher in geopolitical tensions in the Middle East and the Korean peninsula. With the dollar stable overnight, the key will be if gold can hang on to its gains if tensions ease. If so, this may signal that the worst of the correction is now behind us.

Gold trades at 1282.75 and has initial resistance at 1286.00 followed by 1291.00 and 1296.00. The 100-day moving average at 1284.00 this morning will be intra-day support. The crucial level now being Friday’s low at 1260.00. A break of this region suggesting that the pain is not over for long positioning.

Gold Daily

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Currency Analyst
Based in Singapore, Jeffrey has over 25 years experience in the financial markets, having traded currencies, options, precious metals and futures. Jeffrey started his career at Barclays Bank in New Zealand. However he has spent most of it in London and Asia.Jeffrey focuses on the Asia time zone across asset classes. A regular commentator on business news TV and Radio, he is originally from New Zealand and holds an MBA from Cass Business School, London.