Oil prices explode higher
Brent crude and WTI prices continued higher overnight as sentiment in markets swung to peak inflation once again, and concerns persisted around the resumption of Russian gas supplies. Brent crude rose 1.50% to USD 107.25 overnight, before edging lower to USD 106.40 in Asia. WTI rose by 1.50% to USD 103.35 a barrel overnight, moving 0.70% lower to USD USD 102.65 a barrel in Asia.
Brent crude has nearby resistance at USD 107.25, followed by USD 108.00 a barrel. Support is at USD 103.65 and USD 99.50. WTI has support at USD 99.35 and USD 96.00 a barrel, with resistance nearby at USD 104.00 and USD 105.00 a barrel.
Gold remains unimpressive
Gold has another unimpressive session overnight, failing ahead of USD 1720.00 intraday, but closing almost unchanged at USD 1711.00 an ounce, before edging lower to USD 1709.00 in Asia.
Gold’s inability to hold onto even modest rallies in prices, even as the US dollar falls and US bonds trade sideways, is a major concern. Risk remains heavily skewed towards the downside.
Gold has initial support at USD 1700.00, followed by the more important USD 1675.00 an ounce zone. A sustained failure of USD 1675.00 will signal a much deeper move lower targeting the USD 1450.00 to USD 1500.00 an ounce regions in the weeks ahead. Gold has resistance nearby at USD 1725.00, and then USD 1745.00.
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