Increased Gold and Crude Oil swings
|
Gold
The growth trajectory of gold has become less straightforward. After briefly surpassing $2,940 at the start of the week, gold experienced a sharp pullback of nearly $80. However, by the week’s end, the price rebounded, signalling that while buyers remain cautious, they continue to apply upward pressure.
On daily timeframes, gold has entered the overbought territory on the RSI index. Historically, this has led to a temporary pause rather than a reversal.
On weekly timeframes, the market still favours bulls, as the pullback over the last two months has created space for further acceleration, easing the overbought condition.
Crude Oil
Oil prices rose by 4% during the week and then fully erased the increase, falling to six-week lows following calls between President Trump and the leaders of Russia and Ukraine, which hinted at potential geopolitical détente.
However, the decline was largely driven by a third consecutive week of growth in US commercial oil inventories, which increased by a total of 16.2 million barrels. At the same time, production remains near historical highs of approximately 13.5 million barrels per day.
The long-term technical outlook favours bears, as oil is trading below both its 50- and 200-week moving averages. Notably, selling pressure intensified after touching these levels, reinforcing the notion that sellers continue to dominate the market.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.