Gold price and natural gas price fall back but WTI crude price still holding gains
While both gold and natural gas have edged down in early trading, the oil price has held on to most of its recent gains.
Bullish momentum ebbs for gold price
The spot gold price failed to make any real headway on Friday, though it finished off the lows once more, as it had done the previous two sessions.
However, early trading this morning has seen it drop back, matching the declining momentum indicators of stochastics and moving average convergence/divergence (MACD). The previous sustained decline in MACD in late August merely led to consolidation.
In the event of continued losses, previous highs around $2600.00 and then $2531.00 could be support.
WTI holds gains due to Middle East tension
Energised by developments in the Middle East, the WTI crude oil price saw strong gains last week, taking it to its highest level in just over a month.
Friday’s session witnessed the price push to a new one-month high, but it failed to hold its gains in the short-term. News flow, particularly any Israeli attack against Iran, may well provide fundamental support in the short-term. Further gains head towards the 200-day simple moving average (SMA), and the late August high at $77.00.
Any lessening of tensions might see a lower high created, with a close back below $72.00 and also below the 50-day SMA potentially igniting a new drop.
Natural gas drops back
The strong rally in natural gas finally hit some selling on Friday, witnessing a reversal after days of gains.
Now we have to wait to see if more downside results, and whether the price tests trendline support from late August. Having returned to the spring highs so quickly, some consolidation would not be surprising. However, the outlook remains firmly in the bullish camp for the time being.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Trade on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- 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
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
