Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Gold: bullish forecasts
2020-12-02 • Updated
XAU/USD is eyeing $1 850. Will it be able to reach it?
What happened?
Stimulus talks have resumed in the USA. US lawmakers proposed to unveil an aid of $908 billion. The combination of US stimulus hopes and negative real yields pushed the USD down and gold up. Elsewhere, Fed’s Powell held a meeting yesterday and gave quite dark comments about the current economic state. According to him, the recovery path is still uncertain, and the US economic activity is severely damaged. The widespread vaccinations are going to start soon if vaccines pass approval. However, the economy won’t quickly recover after it happens, it will need more time to rebound, and we will see some downbeat data for a while.
Technical tips
Gold has turned to the upside after touching the support of $1 770. It has broken through the 50-period moving average, so the way up to the 38.2% Fibonacci retracement level of $1 840 is clear now. It may meet some selling pressure near this level. However, if it manages to break through it, the way up to the 50% Fibo level of $1 865 will be clear. In the opposite scenario, if it drops below the intraday low of $1 810, it may fall to the key support of $1 800.
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Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
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