Gold, WTI and aluminium prices continue to slide
Gold, WTI and aluminium outlook remains bearish ahead of the weekend.
Gold continues to glide lower
The gold price continues its orderly descent after the US Federal Reserve chair, Jerome Powell’s appearance before the US Congress on Wednesday and Thursday in which he mentioned the possibility of a recession in the US and that his commitment to bringing down price increases is “unconditional.”
While the price of the precious metal remains below its 200-day simple moving average (SMA) at $1,844 per troy ounce, which capped it throughout this week, the mid-June low at $1,806 will remain in sight. Minor resistance above this week’s high at $1,848 can be found at the 16 June high at $1,857.
While the next higher current June highs at $1,874 to $1,877 cap, the last few months’ downtrend remains in place.
WTI about to enter its second negative week
West Texas Intermediate (WTI) crude oil has dropped by around 15% from its $121.43 early June high as demand worries have had a negative impact on its price.
Mounting concerns that rising interest rates aimed at curbing inflation may cause a slowdown in demand have pushed WTI down to its two-month support line at $104.43, around which the price of oil currently trades.
If this week’s low at $101.22 were to be slipped through on a daily chart closing basis, the psychological $100 mark, and the May low at $97.28 may be next in line.
Immediate downside pressure should be maintained while Tuesday’s high, the last reaction high (with a higher high than that seen the day before and after), at $110.82 isn’t overcome.
Minor resistance below this level can be seen at the 17 June low at $106.37 and also along the 55-day SMA at $108.33.
Aluminium trades in near one-year lows on demand woes
Aluminium’s swift descent due to worries of a potential global recession decreasing demand for the metal has taken it close to the July 2021 low at $2,421 which has been one of our downside targets for several weeks now.
Failure at $2,421 would put the June 2021 low at $2,355 on the cards. The immediate downtrend will remain intact while the price of aluminium stays below Tuesday’s high at $2,558 on a daily chart closing basis since it is the last reaction high on the daily chart.
Further resistance can be found at the December 2021 low at $2,582 and more significant resistance at the $2,649 16 June high. Immediate resistance sits at Monday’s $2,481 low.
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.