Expert View on Gold and Crude Oil

Market Outlook

Gold prices edged higher on Monday, extending last week’s strong gains on bets that lackluster U.S. data will keep the Federal Reserve cautious about the future pace of policy tightening. Oil edged up to around $49 a barrel on Monday as a slowdown in the increase of rigs drilling in the United States eased concern that surging shale supplies will undermine OPEC-led cuts. Oil prices are less than half their mid-2014 level because of a persistent glut, even after the Organization of the Petroleum Exporting Countries, plus Russia and other non-members started a supply-cutting pact in January.

Fundamental News

Last week, gold prices rose to two-week highs on Friday as weak U.S. inflation data added to doubts over whether the Federal Reserve would raise interest rates for the third time this year. The precious metal ended the week with gains of 1.32%.

The slowing pace of increases combined with massive draw downs last week on both official crude inventory numbers from the U.S. probably explains the positive sentiment in general at the moment.

Gold showed bullish movement and found the important resistance level of 28143. Now if it will close above the important resistance level of 28200 then 28500 will act as next resistance level. On the other hand, 27600 will act as a major support level.

Silver showed bullish movement and found the important resistance level of 37500. Now if it will close above the important resistance level of 37500 then 38000 will act as next resistance level. On the other hand, 36000 will act as a major support level.

Crude showed bearish movement and found the important support level of 2971. Now if it will close below the important support level of 2950 then 2900 will act as next support level. On the other hand, 3020 will act as a major resistance level.

Copper showed bullish movement and found the important resistance level of 390.45. Now if it will close above the important resistance level of 391 then 395 will act as next resistance level. On the other hand, 380 will act as a major support level.

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