Spot Gold witnessed sharp declines on July 16 following the dollar's surge post-US CPI release. Market consensus suggests Trump-era tariffs amplified price pressures, prompting the Federal Reserve's cautious stance. Chairman Powell's projection of summer inflation gains further contextualizes the retreat, with traders now eyeing Wednesday's PPI for additional monetary policy signals.
Technical indicators reveal bearish momentum across timeframes. The daily chart printed a bearish candle with pronounced upper shadow, indicating expanding declines as moving averages constrict into convergence – characteristic of secondary trend consolidation. Hourly charts show gold plunging below the critical 60-day EMA, with RSI briefly entering oversold territory before partial recovery maintained the near-term bearish bias. The four-hour formation stabilized below resistance at the 60-day EMA, while a death cross pattern signals potential near-term topping action. Immediate resistance converges at $3348 with support at $3308. Trading strategy favors rebound-driven shorts, with $3340/oz serving as pivotal threshold.
Gold Trading Recommendations: - Long positions: Entry 3308-3313, stop loss 3303, target 3345 - Short positions: Entry 3342-3347, stop loss 3354, target 3310
WTI Crude edged higher on July 16 amid expectations of sustained demand from major consumers. Upbeat economic indicators and a surprise 3.6-million-barrel API inventory draw – defying forecasts of a 1.5-million-barrel build – reinforced consumption strength. Market participants largely disregarded tariff threats against Russian oil, focusing instead on demand recovery signals.
Technically, WTI oscillates between key EMAs. The commodity currently trades between the 50-day and 200-day moving averages, historically triggering range-bound behavior. The $65 support zone – a former resistance level – now forms a potential base structure, while $70 persists as formidable overhead resistance. Daily charts reveal a double-bottom formation near $66, with prices firmly above the 20-day EMA. The breach of the near-term downtrend line coincides with MACD histogram flipping positive, indicating building bullish momentum. Critical resistance stands at $67.5 with support at $65.5. Strategy advocates selling into rallies, using $67.2/barrel as directional pivot.
Crude Trading Recommendations: - Long positions: Entry 65.0-65.5, stop loss 64.5, target 67.5 - Short positions: Entry 67.5-68.0, stop loss 68.5, target 65.5
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