Bearish Theme in Gold Remains on Pause

The stronger start to the week for WTI futures has faded into the Wednesday close. Recent bearish price action resulted in a break of support at $88.19, the Sep 26 low. The contract has also cleared support at the 50-day EMA, at $84.46. This signals scope for a deeper retracement towards the $80.00 handle and $79.57, a Fibonacci retracement point. Initial firm resistance is at $87.71, the 20-day EMA. A bearish theme in Gold was put on pause Monday after a second session of gains. Monday’s bounce put prices back above $1850. Nonetheless, the recent sell-off resulted in a break of support at $1901.1 and this was followed by a breach of $1884.9, the Aug 21 low. This confirmed a resumption of the downtrend that started early May. The focus is on $1804.9, the Feb 28 low and a key support. On the upside, firm resistance is at $1878.2, the 20-day EMA.

• WTI Crude up $0.75 or +0.9% at $84.27
• Natural Gas down $0.04 or -1.04% at $3.348
• Gold spot up $5.88 or +0.31% at $1880.92
• Copper up $2.4 or +0.66% at $363.55
• Silver up $0.12 or +0.52% at $22.167
• Platinum up $0.99 or +0.11% at $892.46