XAUUSD seeks support

Gold softens against the dollar as US core inflation remains sticky despite an overall downtrend. The price is still in search of support after a recent spike above 2120. A drift below the immediate support of 2040 has led leveraged momentum buyers to exit, turning it into a resistance level in the process. 1965 at the base of the previous breakout rally is a key level to gauge the strength of follow-through buying. A close back above 2010 then 2040 would signal a bullish continuation. Otherwise, the November low of 1930 would be tested.

USOIL tests critical floor

WTI crude slumped as traders worried that above-target inflation may undermine demand. After crawling back from the major demand zone of 67.00-70.00 next to last summer’s bottom the price hit resistance at 72.00. The invalidated rally was likely driven by profit-taking and sentiment remains cautious at best. Sellers may look to double down and a fall below 69.00 would put 67.00 at risk where a breakout would open the door to a bearish reversal in the medium-term. The RSI’s oversold situation may attract limited buying.

NAS 100 breaks higher

The Nasdaq 100 steadies as investors await the Fed’s interest rate projections. A pop above the recent high of 16160 has put the index back on a bullish trajectory. 16500 is the next hurdle before the bulls could reclaim the all-time high of 16700 from two years ago. As the RSI ventures again into the overbought area, a pullback could be seen as an opportunity to stake in. 16040 would be the first level to expect trend followers jumping in and 15700 further down would be important in keeping the current momentum going.

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