Short-Term Gains Improve Bullish Conditions in Gold

WTI futures remain soft following last week’s steep sell-off. The move lower undermines the recent bullish theme and a continuation would expose support at $70.62, the Jan 17 low, and $69.56, the Jan 3 low. For bulls, a reversal higher is required to refocus attention on the key short-term resistance at $79.29, the Jan 29 high. Clearance of this level would reinstate a bullish theme. Initial resistance is at $76.95, the Feb 1 high. Gold continues to trade above the Jan 17 low of $2001.9. Recent short-term gains improved a bullish condition and a resumption of bullish activity would signal scope for a climb towards $2088.5, the Dec 28 high and a key resistance. For bears, a stronger reversal lower would instead refocus attention on $2001.9 where a break is required to reinstate the recent bearish theme.

• WTI Crude up $0.46 or +0.63% at $73.81
• Natural Gas up $0.01 or +0.45% at $2.018
• Gold spot down $1.52 or -0.07% at $2034.4
• Copper down $0.6 or -0.16% at $377.45
• Silver down $0.15 or -0.65% at $22.2763
• Platinum down $7.49 or -0.83% at $898.83