Bearish Theme in Gold Remains on Pause Following Latest Gains

WTI futures traded lower last week, but started the week on a stronger footing. The 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 break would signal a possible reversal. 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 $0.02 or +0.02% at $86.02
• Natural Gas up $0.06 or +1.69% at $3.435
• Gold spot up $9.04 or +0.49% at $1869.74
• Copper up $0.3 or +0.08% at $363.8
• Silver up $0.26 or +1.19% at $22.102
• Platinum up $3.85 or +0.43% at $889.88