Gold Rally Wednesday Signals Short-Term Reversal

Bearish conditions in WTI futures remain intact and Tuesday’s sell-off reinforced this condition. The contract has cleared $68.80, the Dec 7 low, to confirm a resumption of the downtrend. This maintains the price sequence of lower lows and lower highs and note that moving average studies are in a bear-mode position, highlighting a downtrend. The focus is on $67.28, the Jun 23 low. Key short-term resistance is at $71.96, the Dec 12 high. Gold traded sharply higher yesterday. This signals a short-term reversal and the end of the recent Dec 4 - 13 corrective pullback. Moving average studies remain in a bull-mode position, highlighting an uptrend. A continuation higher would signal scope for a climb toward key resistance and the Dec 4 all-time high of $2135.39. A break of this level would confirm a resumption of the primary bull trend. Initial firm support lies at $1973.2, yesterday’s low.

• WTI Crude up $1 or +1.44% at $70.37
• Natural Gas up $0.01 or +0.56% at $2.343
• Gold spot up $8.46 or +0.42% at $2036.12
• Copper up $9.15 or +2.42% at $388.1
• Silver up $0.21 or +0.86% at $24.003
• Platinum up $8.1 or +0.86% at $946.73