Oil, gold and silver prices rise on heightened geopolitical tensions in the Middle East
Outlook on WTI, gold and silver as US Navy destroys Houthi boats and Iran sends destroyer to Red Sea.
WTI rises on first trading session of the year on heightened geopolitical tensions
Front month Oil - US Crude futures kicked off the new year by quickly rising by nearly 2%, to above 73.00, amid fears that heightened geopolitical tensions in the Middle East could disrupt supply. Over the weekend US Navy helicopters destroyed three Houthi boats whose crews apparently attempted to board a container ship in the Red Sea, prompting Iran to send a destroyer to the region.
The 22 November low at 73.83 represents the next upside target ahead of the 8 November low at 74.92.
Minor support can be found around Friday’s 72.67 high and also at its 71.33 low.
Gold price aims for last week’s three-week high
Spot Spot Gold’s advance from its mid-December $1,974 per troy ounce low has briefly exceeded the 2020, 2022 and May 2023 highs at $2,070 to $2,082 by rising to $2,088 on Thursday before giving back some of its recent gains and slipping to $2,059 on Friday.
Earlier today the precious metal resumed its ascent on increasing geopolitical tensions in the Res Sea and is on track to revisit last week’s $2,088 peak.
Only a fall through Friday’s $2,059 low would put the 21 December high at $2,055 and the mid-December high at $2,048 on the map.
Silver bounces off the 200-day simple moving average
Spot Spot Silver (5000oz)’s rally off last week’s $23.54 per troy ounce low, made between the 200- and 55-day simple moving averages (SMA) at $23.67 to $23.57, is gaining traction with the mid-December high at $24.29 being in focus. Further up sits the 22 December high at $24.60.
Support below Tuesday’s $23.78 intraday low comes in along the 200-day SMA at $23.67, ahead of the 55-day SMA and Friday’s low at $23.57 to $23.54.
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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
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.
