Oil and gold prices may correct higher as the economic and earnings calendar clear out while thin liquidity conditions amplify volatility with stock markets closed and futures exchanges operting on a shortened scheduled for the Martin Luther King Jr Day holiday.
Crude Oil (WTI) $78.32 +$0.32 +0.41%
Oil prices broke through support at $78.48 to stage a shallow recovery from $77.67. Both the US economic and earnings calendars are bare with the markets closed for the Martin Luther King Jr. day holiday, leaving room for a corrective upswing. Indeed, thin liquidity around the holiday may boost volatility in the brief half-day trading period.
GOLD, SILVER TO CORRECT HIGHER BEFORE BEARISH MOMENTUM RESUMES
Gold $1135.22 +$4.30 +0.38%
Gold prices rebounded from rising trend line support, with near-term resistance lining up at $1143.54 from here. Traditional catalysts are out of the picture with the US economic and earnings calendar is empty for the Martin Luther King Jr. Day holiday, so a corrective upswing seems likely in the near term.
Silver $18.60 +$0.19 +1.00%
Silver technical positioning looks substantially more constructive than that of gold, hinting that a significant move higher may be on the way with prices setting up a Triangle bullish continuation pattern. That said, a definitive break above $18.65 is still required for confirmation, in which case the next level of resistance would line up at $18.90. Indeed, thin holiday trading conditions may amplify volatility just enough to generate a breakout.
