Gold and Crude Oil: WTI stays weak near $56.00

• Prices of WTI recede further and challenge the $56.00 mark.
• The API will publish its report later today.
• US CPI, Powell, trade drive global sentiment.

Prices of the West Texas Intermediate are extending the downside on Wednesday and are trading at shouting distance from the key $56.00 mark per barrel.

WTI focused on trade, OPEC+

WTI is down for the third consecutive session today after being rejected from the vicinity of the $58.00 mark. This area of resistance is well reinforced by the proximity of the 200-day SMA in the $57.30 region.

In the meantime, the lack of progress on the US-China trade front has been once again exposed after President Trump made no comments on the roll over of some existing tariffs and his potential meeting with China’s Xi Jinping at his speech on Tuesday. Trump reiterated, however, that a deal appears close.

Adding to the downbeat mood in crude oil, OPEC Secretary Barkindo deemed as premature any assessment on the need for extra oil output cuts ahead of the key meeting next month.

Later in the session, the American Petroleum Institute (API) will publish its weekly report on US crude oil supplies. In addition, traders will stay wary of the release of key US inflation figures for the month of October along with Chief Powell’s testimony.

Gold bounces off lows near $1,450

The ounce troy of the precious metal has managed to regain some poise after bottoming out in the vicinity of $1,450 earlier in the session. The resurgence of the risk-off sentiment has been fuelling the buying pressure in the safe havens like Gold and the Japanese yen and driving lower US yields.

WTI significant levels

At the moment the barrel of WTI is losing 0.93% at $56.27 and a breakdown of $56.00 (100-day SMA) would expose $55.64 (55-day SMA) and finally $53.71 (low Oct.31). On the upside, the next resistance lines up at $57.50 (monthly high Nov.5) followed by $60.00 (psychological handle) and then $60.94 (monthly high Jul.11).