Gold XAUUSD: 3 Bearish Factors to Watch | Brent vs WTI Divergence & Silver Outlook

Good day, Team GCI.

In our last video, we noted a continued increase in the price of crude oil.

With the Brent/WTI spread at almost $13, are we seeing a divergence and a bearish trend starting on WTI?

In today’s Market Outlook, let’s take a look at Forex trading on GBPNZD, Gold, XAUUSD, Silver, XAGUSD, WTI, and Brent Crude Oil.

Just a reminder that these videos are intended as observational and educational, and are not to be considered as trading advice.

On the one-hour charts, we see Brent approaching resistance, but WTI seems to be following a downward channel.

We will watch our levels and our technicals for signs of a reversal.

But most importantly, watch the news.

This is still a fundamental trade, and any news regarding aggression and the flow of crude oil out of the Middle East will affect price.

If we zoom out to the daily charts, we see very different technicals between WTI and Brent and some neutral-looking candles, but be careful.

Last time we spotted a descending triangle in gold and price, again, tried to break support this morning.

We have seen USD weakness lately, but many analysts see this as temporary.

If USD continues stronger, we may see the bear run continuing, with the next key level below at around $4,000.

Another factor keeping USD buoyant and gold lower is the 10-year Treasury bill at over 5% and the 30-year at almost 5.5%.

Also, the Fed will likely not raise interest rates this month, but the rumours point to a 90% chance of a rate rise in December.

But if we get good news on inflation, for example, the end of the war, or a dramatic change in attitude after the US Midterms, we could see something completely different.

As we saw last time, Silver as well is still bearish and tried to go lower today.

Price action will need to break through support at $55.50, with the next key level below at $50 from almost 2 years ago.

If you are looking at trend trading opportunities, we see price action on GBPNZD approaching the upper trend line in this bear run.

Check your technicals on this and lower time frames.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.