WTI price drops into key support, while gold price turns higher
WTI slumps into critical support, with the potential for further losses if broken. Meanwhile, gold attempts to regain ground after recent losses.
Gold on the rise after deep retracement
Gold declines seen last week took us into the zone between the 61.8% and 76.4% Fibonacci retracement levels. The price appears to have turned higher once again after finding support on the previous resistance level of $1674.
With the price having eased back a little overnight, a rally up through $1703 would go a long way to building a more bullish intraday pattern that could set us up for another push towards $1748. One warning sign came with the bearish divergence that has been seen over recent days, yet a break through $1703 would at least provide us with a more bullish price action move to focus on.
WTI declines may not be over yet
WTI saw an incredible decline to kick off the week, with news headlines dominated by the drop into negative territory of the final day of the May contract. Nevertheless, things are somewhat more normal on the spot market, with the prices closing in on the $20.00 handle.
Crucially, WTI is now trading back at the $20.52 support level which has largely provided support for the past month. With that in mind, the ability or inability to break below $20.52 will be key in determining the outlook for the day ahead. Given the sharp declines seen over the past week, a drop below this level could give way to another significant bout of downside.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
Live prices on most popular markets
- Forex
- Shares
- Indices
