May 17, 2024 04:11 GMT
Oil & Gold Tracking Higher For The Week, Technicals More Positive For Bullion
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Oil sits close to highs for this week, with the front month Brent contract near $83.50/bbl. This is +0.25% on end Thursday levels in NY, while for the week we are tracking around 0.80% higher, which would be the first weekly gain since the end of April. WTI was last near $79.30/bbl, currently up near 1.4% for the week.
- The past week has seen relatively narrow trading ranges for oil, as demand and supply factors have largely offset each other. Lower crude stockpiles in the US have been a positive, along with signs of a potential soft landing scenario for the US economy (which could bring earlier Fed cuts).
- Still broader demand concerns continue to cloud the outlook. Today's China data reinforced the uneven nature of the current economic backdrop, with consumer spending softer relative to industrial acitivty.
- In terms of levels, a bearish theme in WTI futures remains intact and scope is seen for a move to $76.07, the Mar 11 low. Initial firm resistance is at $84.46, the Apr 26 high.
- For gold, we are tracking up a further 0.70% for the week at this stage, last near $2377. The first part of Friday trading has been range bound. The broader uptrend looks positive, although we haven't been able to breach the $2400 level. A continued push higher would refocus attention on $2,431.50, the Apr 12 high and bull trigger
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