Last Week's Gains Signal Short-Term Reversal in Gold

Bearish conditions in WTI futures remain intact and last Tuesday’s sell-off reinforced this condition. The contract has cleared $69.08, Dec 7 low, to confirm a resumption of the downtrend. This maintains the price sequence of lower lows and lower highs and note that MA studies are in a bear-mode position, highlighting a downtrend. The focus is on $67.07, Jun 23 low. Gains are considered corrective. Resistance to watch is $73.27, the 20-day EMA. Gold traded sharply higher last Wednesday. This signals a S/T 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 $2135.4. A break of this level would confirm a resumption of the primary bull trend. Initial firm support lies at $1973.2, the Dec 13 low.

• WTI Crude down $0.05 or -0.07% at $71.38
• Natural Gas up $0.05 or +1.93% at $2.54
• Gold spot up $3.2 or +0.16% at $2023
• Copper down $1.75 or -0.45% at $387.45
• Silver up $0.15 or +0.65% at $24.0166
• Platinum up $7.82 or +0.83% at $951.95