Oil markets remain becalmed
Oil markets eased on Friday, but only modestly so, as attention remained on target focused on equity markets. Brent crude fell just 0.60% to USD55.00 a barrel, and WTI was unchanged at USD52.15 a barrel. Oil has risen with equities in Asia, with Brent crude rising to USD55.45 a barrel, and WTI rising to USD52.50 a barrel.
Despite the noise or lack of it, both contracts remain comfortably ensconced in their one-month ranges, albeit nearer to the lower side. With fears that the global recovery will not occur at the previously hoped for pace, the pressure on prices is most likely to appear on the downside, with the speculative market still very long both contracts.
Brent crude is bound by resistance at USD56.60 and USD57.40 a barrel, with support at USD54.50 a barrel. WTI has resistance at USD54.00 a barrel, and support at USD51.60 a barrel. Clearance of those levels, either way, will signal oil’s next directional move.
Gold celebrates silver anniversary
Despite silver rallying nearly 13% on Reddit-mania over the past few sessions (5.50% today), gold has only captured a modest silver anniversary celebration. Gold tested resistance at USD1875.00 an ounce on Friday but finished the session up just 0.25% at USD1847.75 an ounce. In Asia this morning, the leap higher by silver has dragged gold up only 0.65% to USD1860.00 an ounce.
The price action has left gold still stuck in a broader USD1830.00 to USD1875.00 an ounce range, which has nicely covered the yellow metal for the past two weeks. Despite the noise from silver, gold is giving no hints yet of its next larger directional move. Patience continues to be a virtue.
Gold has resistance at USD1875.00 an ounce, followed by the 100-day moving average (DMA) at USD1878.00 an ounce. It has fallen through the 200-DMA at USD1850.00, which becomes an intra-day pivot point. Support is at USD1831.50, followed by the January 18th spike to USD1802.50 an ounce.