#Gold and #WTI #CrudeOil Forecast : 14 JUNE 2022

Gold Forecast: Slammed into Bottom of Range

Gold markets tried to go higher at the open on Monday but have found so many sellers out there that they have collapsed and slammed into the bottom of the overall range that we have been in for some time.

This is because the 10-year yield in the United States broke above the 3.25%, and then went all the way to the 3.35% level. As long as yields continue to rally the way they have, gold will not be attractive, and therefore it’s a situation where you are going to see almost anything priced in US dollars face downward pressure.

The size of the candlestick is huge, and that suggests that we are going to continue to see a lot of negative pressure, and as long as that’s going to be the case, I just don’t see that buying gold will be doable. In fact, it’s not until we break above the $1880 level that I am going to consider trading gold; however, I must admit that I am more of a swing trader and less of a range-bound trader. If you are a range-bound trader, it might be worth trying to bet on a bounce, but you would have to keep a very close on the 10-year note.

If we break down from here, then it’s likely that we go down to the $1800 level, which is a large, round, psychologically significant figure, and an area that should be a massive support. However, if we turn around and break to the upside, it opens up the possibility of $1900, maybe $2000 after that. Ultimately, this is a market that is probably stuck, but it’s going to take all of its cues from the Federal Reserve.

At this point, the Federal Reserve is going to break something, but I don’t think it’s necessarily going to be the gold market. Yes, gold could fall apart from here, but unlike most other assets, gold has 5000 years of backing and as far as being worth something. Granted, if you are levered, that’s not going to do any good, but at this point, I think we got a scenario where the market should give you a nice buying opportunity eventually, but it might be at a lower level based on what I’m seeing in the greenback and of course the bond markets.

WTI Crude Oil Forecast: Continues to be Volatile

The West Texas Intermediate Crude Oil market has had a very volatile trading session, dipping down to the $117 region, before turning around and showing signs of life near the $120 level. The market had recently broken out of a previous triangle, and now it looks as if we are trying to go much higher. Ultimately, if we can break above the top of the candlestick for the day, then it’s likely that we could go to the $125 level. Breaking above the $125 level is something that I would anticipate seeing given enough time.

Looking at this candlestick shows you just how volatile the world is going to be. This is a market that has a lot of crosswinds, as the market has to worry about inflation, which in turn should push the price higher, but at the same time, it’s likely that we take a look at the reopening trade pushing oil much higher as a lot of production was taken off-line during the pandemic. Because of this, we are all over the place and of course, there is the added pressure of whatever is happening with Russia at the moment.

Because of this, I think the market is going to continue to be very volatile, but given enough time there are plenty of buyers out there willing to take advantage of value when he shows up. The $115 level should be a significant amount of support based upon the “market memory” of the triangle. The 50 Day EMA has breached the $110 level, and now looks as if it is going to go to that area above, namely the $115 level.

If we were to break down below the 50 Day EMA, it’s possible that the market could go lower and look to the uptrend line of the triangle. Breaking below that then as this market breaking apart. I think it’s much more likely that we go higher, perhaps breaking above the $130 level after a short-term pullback allowing for the market to build up momentum. Keep in mind that crude oil is a very volatile asset, so you need to be cautious about your position size but it’s clear that you should be buying and not selling, as has been the case for most of the last six months or so.

For more forex gold Indices analysis, Signals and Account management services text me on my telegram: Claramellor

best Forex signal telegram group

#Singapore #Dubai #Brasil  #UAE #USA #Amsterdam #Brussels #Dublin #Lisbon #London #Paris #fx #fxinvestment #fxanalysis #fxtrader #scalping #xauusdgold #xauusdsignals