Crude oil, Gold, Palladium price analysis roundup

Written by: Stanko Iliev
January 31, 2021
  • Crude oil continues to trade above $50 support
  • Gold is still trading below the $1900 resistance while palladium price remains under pressure
  • Looking ahead to next week, the focus of investors will shift to U.S. employment data

The global stock markets weakened last week, Wall Street’s three main indexes closed sharply lower on Friday and registered their biggest weekly declines since October. The world still needs to face COVID-19 challenges, and risk aversion will prevail the next trading week.

“Concerns over a stretched valuations, new coronavirus variants, and rising COVID-19 cases kept investors on edge about a pullback and an increase in volatility in the near-term. The concern is also if a vaccine is a lot less effective, then investor and consumer confidence will be substantially lower,” said Sam Stovall, chief investment strategist at CFRA Research.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Crude oil continues to trade above $50 support, and according to the latest news, the U.S. crude supply fell 5.3M barrels last week. Palladium price extended its correction from the recent highs above $2380 registered last Monday; still, as long the price is above $2000, there is no risk of the bear market.

Gold price remains in a bull market, but it is still unable to advance above $1900 resistance as the U.S. Dollar has shown tentative signs of a recovery.

Looking ahead to next week, the focus of investors will shift to U.S. employment data, as the country will publish the Nonfarm Payrolls report on Friday. Some estimates say that the U.S. could add 85K new jobs in January, after losing 145K positions in December.

Crude oil continues to trade above $50 support

The crude oil price has advanced from $48 above $53 since the beginning of January, and the current price stands around $52.

Data source: tradingview.com

The current resistance levels are $55 and $60; $50 and $45 represent the firm support levels. If the price jumps above $55, it would be a signal to trade oil, and we have the open way to $60.

On the other side, if the price falls below $50, it would be a strong “sell” signal, and the price could fall to $45 support.

Tip: looking for an app to invest wisely? Trade safely by signing-up with our preferred choice, eToro: visit & create account

Gold remains in the buy zone as long the price is above $1800 support

The dominant impact of Covid-19 could help gold price to advance next trading week above the current level. This precious metal price is still trading below the $1900 resistance level, but sentiment for Gold remains bullish.

Data source: tradingview.com

The current resistance levels are $1900, $1950, and $2000; $ 1800 and $1750 represent the critical support levels.  If the price jumps above $1900, it would be a signal to buy Gold, and the next target could be around $1950.

Palladium price remains under pressure

Palladium price extended its correction from the recent highs above $2380 registered last Monday, and the sentiment for this precious metal remains bearish for the next trading week.

Data source: tradingview.com

Worries, because of the sluggish economic growth amid the ongoing pandemic continue to dominate the financial markets, and if the price falls below $2200, it would be a strong “sell” signal, and we have the open way to $2000.

Summary

The global stock markets weakened last week, Wall Street’s three main indexes closed sharply lower on Friday, and the risk aversion will prevail next trading week. Crude oil continues to trade above $50, sentiment for Gold remains bullish while palladium price remains under pressure. Next week, the focus of investors will shift to U.S. employment data, as the country will publish the Nonfarm Payrolls report on Friday.