The commodities (gold and oil) are trading in narrow ranges on the back of mixed fundamentals, but not anymore. There is a chance of potential breakout in gold and crude oil in the wake of FOMC Statement and EIA stockpile report.

Gold prices came under pressure after the news that the United States and China are trying to restart negotiations to defuse a trade war. While crude oil is under selling pressure as the American Petroleum Institute (API) report pointed to oil inventories rising by 5.6M barrels last week.

As discussed earlier in FX Leaders Aug 1 – Economic Event Report, the EIA will remain in the limelight for the release of stockpile data during the U.S. session today. I will be sharing the technical setup on gold and oil shortly, but before that, let’s take a quick look at the key trading levels that are worth watching today.

Gold – XAU/USD – Trading Levels

Support Resistance
1216.14 1226.6
1212.9 1229.84
1207.67 1235.07
Key Trading Level: 1221.37

WTI – Crude Oil – Trading Levels

Support Resistance
68.13 69.71
67.63 70.21
66.84 71
Key Trading Level: 68.92