​Gold prices hits resistance, while WTI price grinds higher

Gold shows signs of potential weakness at trendline resistance, while US crude continues to grind higher within consolidation phase.

​Gold rallies into trendline resistance

Gold has been on the rise after the recent retracement into the 76.4% Fibonacci retracement level at $1692. That rise could start to come under pressure from here though, with trendline resistance bringing some early selling pressure. The stochastic is also turning lower once more, with a break below the 80 level looking highly likely.

The past four occasions we have seen such a breakdown out of overbought territory, the price of gold has seen sharp losses. The wider outlook still remains bullish, yet it does look likely we will see a move lower over the short term. We would need to see a break through $1723 to signal an end to this recent period of consolidation.

WTI consolidation continues as we await breakout

WTI has been grinding higher over the past week, with markets keeping a keen eye out for whether we see a sharp decline in the lead up to Monday's June contract-end. With crude inventories falling yesterday, markets have seen some sign of hope that we are reaching a point of equilibrium given production cuts and rising demand.

However, with plenty of oil sloshing around at sea and on, with oversupply still an issue. Ultimately, we need to see a break through either $27.39 or $23.91 to bring a wider bias into play. In the meantime, this short-term ascending channel looks set to continue.


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