Outlook in Gold Still Technically Bearish Despite Recent Gains

The uptrend in WTI futures remains intact and recent weakness is considered corrective. Last week’s move lower resulted in a print below support at $78.33, the Aug 3 low, however price action has since recovered. Note that a key support also lies at the 50-day EMA, which intersects at $77.81. A clear break of this level would highlight a stronger bear cycle. Price is approaching resistance at $81.75, a break would be a bullish development. The outlook in Gold remains bearish, however, a short-term correction remains in play and the yellow metal has breached resistance at the 50-day EMA - at $1930.6. This strengthens the short-term bull cycle and signals scope for a stronger recovery. Attention turns to $1948.3, a Fibonacci retracement. On the downside, initial firm support lies at $1903.9, the Aug 25 low. A break of this level would signal a resumption of bearish activity.

• WTI Crude up $0.41 or +0.51% at $81.54
• Natural Gas up $0.01 or +0.3% at $2.668
• Gold spot down $0.88 or -0.05% at $1936.19
• Copper down $1.95 or -0.51% at $382
• Silver down $0.13 or -0.52% at $24.5886
• Platinum up $0.43 or +0.04% at $982.96