Gold Trend Conditions Remain Bullish Despite Recent Pullback

WTI futures traded sharply lower Monday and in the process breached support at $78.45, the Jan 19 low. The move lower undermines the recent bull theme and a continuation would signal potential for an extension towards $72.74, the Jan 5 low. On the upside, the bull trigger has been defined at $82.66, the Jan 18 high. A break of this level is required to reinstate the recent bullish theme. Trend conditions in Gold remain bullish and the latest pullback is considered corrective. Recent cycle highs confirm an extension of the uptrend and maintain the price sequence of higher highs and higher lows. Moving average studies remain in a bull mode position - reflecting the uptrend. The focus is on $1963.0 next, a Fibonacci retracement. Initial firm support to watch lies at $1899.5, the 20-day EMA. A break would signal scope for a deeper pullback.

• WTI Crude down $1.03 or -1.32% at $76.87
• Natural Gas down $0.04 or -1.46% at $2.639
• Gold spot down $19.7 or -1.02% at $1903.8
• Copper down $6.8 or -1.62% at $413.05
• Silver down $0.51 or -2.18% at $23.0914
• Platinum down $17.42 or -1.72% at $996.21