Here is an important update on gold and oil.

Gold & Oil
August 14 (King World News) – Naveen Nair at Citi:  Both oil prices and gold are testing key levels, and a weekly break higher would be a bullish techs signal.

  • Gold: Testing resistance at 2478-2483 (double bottom neckline, July high).
  • Brent: testing strong resistance at 82.02-82.60 (200w MA, 200d MA, 55d MA)
  • WTI: Testing resistance at 79.85 (55w MA)

Gold
As we flagged before, gold has found support at the 55d MA in late July and early August. Since then, we have come back towards short term resistance at 2478-2483 (double bottom neckline, July high).

Gold Price Near $2,500

We remind that the medium term picture remains bullish, with an inverted head and shoulders at play. The short term double bottom (IF we see a break above 2478 resistance) would also add on to bullish signs.

Resistance remains likely at $2500-2523 (psychological level and inverted head and shoulders indicated target).

Gold Remains Very Strong

Nearby Brent Crude Oil (CO1)
Brent is testing strong resistance at 82.02-82.60 (200w MA, 200d MA, 55d MA), staging a rise after briefly breaking below the 76.62-76.76 (Feb and June 2024 lows).

Brent Crude Oil Bumping Up Against Resistance

Weekly slow stochastics is on the verge of crossing higher as well. IF we see a weekly break above the 82.02-82.60 region, it would be a bullish sign with subsequent resistance at 87.95 (July high).

Break Above 82.60 Would Be Bullish

On the other hand, support remains at 76.62-76.76 (Feb and June 2024 lows).

Nearby WTI (CL1) (West Texas Intermediate Crude Oil)
WTI is testing resistance at the 55w MA at 79.85.

WTI Crude Oil Testing Resistance Near $80

IF we break higher on a weekly basis, it would be bullish, with subsequent resistance only at the 84.46-84.52 handle (April 26 high, July high).

Weekly Close Above $80 Would Open The Door For A Move Near $90

On the downside, support is only at 71.67-72.48 (June low and August low).

US Dollar Rolling Over
King World News note:  With the US dollar rolling over, if the dollar continues to break down that would ignite commodity prices higher, thus creating more inflation in the United States. Very tricky ahead of an election and an expressed desire to lower rates. Let’s keep a close eye on the US dollar. In the meantime, gold is consolidating beautifully while frustration rules the silver market. The HUI Gold Mining Index is back below the 300 level, more than 50% below its 2011 peak, which is preposterous based on current fundamentals. That kind of severe undervaluation will not remain a state of permanence.

Gold & Silver
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