WTI, gold and US natural gas await plethora of rate decisions
Outlook on WTI, gold and natural gas amid the Israeli ground invasion of Gaza and rate decisions by the BoJ, Fed and BoE.
WTI range trades as investors await plethora of rate decisions
WTI continues to range trade below its 55-day simple moving average (SMA) at $85.41 per barrel which capped the upside since Wednesday as investors await rate decisions by the likes of the Bank of Japan (BoJ) on Tuesday, the US Federal Reserve (Fed) on Wednesday and the Bank of England (BoE) on Thursday. If Friday’s high at $85.62 were to be bettered, the mid-October high at $87.05 may be revisited. Strong support remains to be seen between the current October lows at $81.95 to $81.21.
Gold price retreats from last week’s high
Now that the widely anticipated ground invasion of the Gaza strip by the Israeli army has begun, the price of gold has slipped back below the psychological $2,000 per troy ounce mark as investors bought the rumour and pushed the gold price to its March peak at $2,009 last week but now sell the fact. The accelerated uptrend line at $1,991 may thus be tested and, if fallen through, Friday’s low at $1,977 as well. While it underpins, immediate upside pressure should retain the upper hand, though. A rise above $2,009 would engage the 10 May high at $2,048.
Natural gas prices come off last week’s new ten-month high
US natural gas futures reached a new ten-month high at $3.646 on Friday, marginally above their early October high, as Israel began a ground invasion of the Gaza strip over the weekend and supply worries drove the price of gas higher. Early on Monday morning a lower open is being made with a gap forming with Friday’s low at $3.444 which may act as resistance in the course of the day. As long as Friday’s high at $3.646 isn’t bettered, the odds are stacked in favour of a sell-off being seen as negative divergence on the daily Relative Strength Index (RSI) accompanied last week’s advance and acts as a possible early warning signal of a bearish reversal taking shape. If so, the 20 October low at $3.172 may be revisited over the coming days.
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