All eyes are riveted on US inflation data with regards to WTI, gold and copper
Outlook on WTI crude oil, gold and copper ahead of all-important US inflation data.
WTI crude oil nears key resistance
The advance in WTI crude oil is beginning to lose upside momentum as traders wait to see what the January US inflation reading, out at 13:30 GMT today, will bring to the table.
The price of oil has been oscillating since mid-November between roughly $83 per barrel and $70 per barrel with it having swiftly recovered from its early February low at $72.50 but so far not having reached its key resistance area at $81.33 to $83.30. It consists of the mid-October low and December-to-January highs and may well cap once more.
Should a continued advance take the price of WTI to above its $83.30 early December high on a daily chart closing basis, though, a major bottom will have been formed with not only the 200-day simple moving average (SMA) at $89.92 but also the October and November highs at $92.70 to $92.95 being in sight.
Slips should find minor support along the 55-day SMA at $77.77 and, below it, at last Thursday’s low at $76.70. If fallen through, the January and February lows at $72.64 to $72.50 might be back in the picture.
Gold remains under pressure
The speed of the decline in the price of gold from its nine-month high at $1,959 per troy ounce is slowing down but nonetheless it has now reached the 55-day SMA at $1,853 which may offer short-term support ahead of today’s widely anticipated US inflation data for January.
Should it surprise to the upside, the US Federal Reserve (Fed) is expected to remain hawkish which should lead to a stronger US dollar and thus a weaker gold price which may then slide to its early January low at $1,826. Together with the early December high at $1,811 it may offer good support, though.
A resumption of the November-to-February uptrend would only become feasible if a rise and daily chart close above last week’s high at $1,890 were to be seen.
Copper recovers from early February low
Copper is seen bouncing off its early February low at $8,809 per ton as traders await January US Consumer Price Inflation (CPI) data on Tuesday which is expected to come in at 0.5% month-on-month (0.4% for core inflation) and 6.2% year-on-year versus 6.5% in the previous month.
A rise above last week’s high at $9,064 is needed, for a bullish reversal to be seen, however. If so, a gradual advance towards the $9,951 January high may ensue.
A slip through last week’s low at $8,809 would put the 55-day SMA and the November-to-February uptrend line at $8,731 to $8,706 back on the map.
Related articles
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
