Oil and Yellow Metal Maintaining Their Positions
WTI has remained at 51.35. Brent dropped 1% to close at 56.90. Iraq and Libya have extended the output and thus selling pressure was reduced. WTI as well as Brent are staging some consolidation. Brent spot is ready to hit the long-term breakout zone between 56.50 and 57.00. In this case, it will end at 55.00. Resistance is noted over 57.50. WTI spot is trading at 51.35. In case of a break, there would be larger correction towards 50.30 and 49.00. Resistance is seen at 52.50 and long-term resistance area has formed between 53.50 and 54.50.
On Friday, the yellow metal dropped 7 dollars and closed at 1280.50. Today, the bearishness remains as 4 dollars had been lowered to 1276.50. Now, the main movers of gold are US yields and the greenback. The metal might head towards 100-day moving average at 1272.45 and it would point at improvement. A breach in that area will align August minimums and 200-day moving average at 1250.00. Resistance is located at 1281.00 and 1285.00.