Gold and Oil prices looking for further direction
Gold prices surged to its highest level in two months after the US and UK central banks indicated interest rates would remain low in the near term. At the time of writing, the yellow metal was trading above $1727. Considering the recent bullish move the gold investors will closely monitor the release of US inflation data, which is set to be released on Wednesday, 10th November.
The technical scenario is bullish after the price breaks above the psychological mark of $1800. Currently, the gold price trades near the crucial trend line resistance area 1830/35. In the short-term, If the price break above $1835 the next upside levels to watch $1842 and $1860. On the flip side, the immediate support is near $1815 followed by $1810/00.
Crude oil prices struggling to find the upside momentum ahead of crude inventories data. During the last week, the EIA inventory report showed US crude inventories increased by a more than expected 3.3 million barrels last week. The oil traders also waiting for this week OPEC monthly report, which will help form outlook for the demand-supply balance.
On the other hand, the members of the Organisation of the Petroleum Exporting Countries and allied countries on last Thursday decided to only raise output by the agreed 400,000 barrels per day from December, despite Biden’s calls for increased oil production ahead of forecast.
Technically the overall momentum remained mixed after the US crude oil prices ended into negative territory for the last two weeks. Meanwhile, the oil prices started this week slightly higher and recovered from some previous week losses.
Moving ahead If the bullish momentum continues then the next upside levels to watch and 83.40/84.20. On the downside, any meaningful pullback now seems to find some support near the 80.70 zones, below which the slide could further get extended towards the 79.50/78.00 region.