Commodities report: gold and crude

Signs of a recovery for crudes as both Brent and US crude rally towards key resistance. Meanwhile, gold may be behind, yet signs point towards the potential of a similar bounce.

Oil pipeworks
Source: Bloomberg

Gold drifts lower
Gold is drifting lower this morning, following a bounce from the bottom end of the channel that has been in play over the past week. The downtrend remains in play, yet the inability to sharply selloff is somewhat of a warning sign that the overnight rally could be a precursor to gold returning to the top end of this channel.

For a bullish outlook to come into play, a closed hourly candle above $1066 would be required. Until then, the bearish trend continues to be evident. Support levels of note are $1062 and $1058, while resistance levels are $1066, $1069 and $1074.

US crude showing signs of recovery
The rally in US crude yesterday has set us up for a potential strengthening as we head into the FOMC meeting tomorrow. The key here is whether we can see an hourly close above $37.72, which would bring a bullish intraday outlook.

In that scenario, resistance levels of note are $37.86, $38.00 and $38.57. Alternately, a closed candle below $37.10 would bring a renewed bearish view, for a move back towards $35.78 support.

Brent bounce could bring further upside
Brent is in a similar situation to US crude, with a bounce yesterday setting up the higher low that we are now seeing a push higher from. The key here is $38.66, where a closed hourly candle above this level would bring about a bearish intraday view. Resistance levels of $39.75, $40.00 and $40.94 would then be in view.

Alternately, a closed hourly candle below $37.82 would bring back the bearish view for a move back towards the $36.74 low set yesterday.

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