Gold markets exploded to the upside ahead of the FOMC Meeting Minutes on Wednesday, reaching towards the $1325 level. The market does look a little bit overextended, with stochastic pointing to overbought conditions however buys on pull backs could be on the cards for a couple weeks.
The crude oil markets were explosive during the trading session on Wednesday, reaching fresh, new highs over the last couple of weeks, but we still have a lot of moving parts out there that could change trajectory. At this point, it does look a little overbought and with resistance levels being tested we could see some pulls backs.
Due to Market uncertainty it’s likely that we will continue to see a lot of choppiness, but I think that in the end, gold should rally, especially if it seems as if there are only 3 interest rate hikes this year. I believe there is a significant amount of support underneath at the $1300 level, and I currently look at that as a bit of a “floor” in the market. I think that the pullbacks will continue to be looked at as value, and one could continue to buy these dips in the market.
The WTI Crude Oil market exploded to the upside yesterday breaking above the $65 level as the Americans bought more crude oil. I think that the market is a bit overbought with the stochastic s showing signs of oversold conditions and I also recognize that there are is a strong chance of this market reversing based upon exhaustion. It is possible that short-term traders will continue to pick up this market every time it dips over the next few of days.