During the previous week, despite all the fluctuation caused by fundamentals, the gold and crude oil prices traded exactly in line with our weekly trading levels. Investors are short selling crude oil in response to the ruthless rise in U.S. drilling activity pointed to increased output. Remember, Trump spoke about Iran during the previous week and showed his intentions of renewed sanctions, making crude oil bullish.

But lately, the resistance began in Asia and Europe to U.S. sanctions against major crude exporter Iran. Iran is one of the major crude oil exporters and does play an important role in fulfilling the crude oil needs of Germany and China.

Whereas, gold is taking a bullish turn as a result of the weakness in the dollar. The precious metal is very sensitive towards greenback’s prices and is negatively correlated. Therefore, a drop in dollar index is helping a rise in gold. Looking at FX Leaders May 14 – 18 – Economic Events Outlook, we can’t find any trendsetter catalysts this week. So, it’s best to follow the weekly trading levels.

Gold – XAU/USD – Trading Levels

Support     Resistance

1307.93        1324.67

1302.77        1329.83

1294.4          1338.2

Key Trading Level:    1316.3

WTI – Crude Oil – Trading Levels

Support     Resistance

68.39            71.63

67.39            72.63

65.77            74.25

Key Trading Level:    70.01