Gold and oil ease losses of previous session
Gold and WTI dropped to key technical support on hopes of a de-escalation in Ukraine but swiftly recovered when renewed scepticism crept in.
Gold revisited but bounced off its mid-March low
Yesterday the price of gold briefly dipped to our target zone on hopes of a peace agreement being reached between Russia and Ukraine.
It consists of the early March low and the 61.8% Fibonacci retracement of the February-to-March advance at $1,895 to $1,890 from where it swiftly recovered and formed a potentially bullish Hammer on the daily candlestick chart. This bullish reversal pattern will only be confirmed on a rise above yesterday’s high at 1,929, though.
If confirmed, the 1 and 17 March highs at $1,949 to $1,950 would be eyed ahead of the key $1,959 to $1,974 resistance area. It is made up of the September and November 2020, January 2021, and February 2022 highs and as such is expected to again cap, if revisited at all.
Good support below the 22 March low at 1,911 remains to be seen at $1,895 to $1,888, which includes the 55-day simple moving average (SMA).
WTI swiftly recovers from yesterday’s sharp drop
WTI's recent 15% decline from last week’s high has taken it close to the December-to-March uptrend line at $97.25 on hopes of a peace deal being agreed between Russia and Ukraine.
The oil price did swiftly bounce back, however, as renewed scepticism crept in with the 23 and 25 March lows at $108.20 to $108.23 possibly being reached today.
As long as last week’s high at $116.31 isn’t bettered, however, renewed downside pressure should make itself felt, targeting the 55-day SMA at $96.13 and the mid-March trough at $92.45.
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