WTI, gold and silver prices continue to rise, the latter to levels last seen a year ago
Outlook on WTI, gold and silver ahead of publication of US FOMC minutes and CPI.
WTI nears two-and-a-half-month high
WTI is about to trade in two-and-a-half-month highs after rallying by more than 2% in the previous session on signs of tighter global oil supplies and an industry report that pointed to another decline in US crude inventories at a key storage hub.
WTI is fast approaching last week’s peak at $81.79, above which beckon the January high and 200-day simple moving average (SMA) at $82.65 to $82.77 which may act as short-term resistance. Further up sits the December high at $83.30.
An upside bias should be maintained while Tuesday’s low at $79.40 underpins. Incidentally it was made along the breached January-to-April downtrend line, now because of inverse polarity, support line from where Tuesday’s rally began.
Below it minor support can be found at the $79.02 March-to-April gap high point with the gap descending all the way to $75.76.
Gold builds on Tuesday’s gains
Gold’s descent from last week’s one-year $2,032 per troy ounce peak found support along the March-to-April uptrend line, now at $1,997, both on Monday and Tuesday, before the price of the precious metal advanced by over a percent to Wednesday’s intraday high to date at $2,021 ahead of the publication of last month’s FOMC minutes and March CPI numbers.
Minor support sits between $2,009 to $2,003, the late March highs, and can also be found around the psychological $2,000 mark with last week’s high at $2,032 remaining in focus. Were it to be bettered, the March 2022 high and the August 2020 all-time high at $2,070-to-$2,075 would be back in the picture.
The medium-term uptrend remains intact while Monday’s low at $1,982 underpins on a daily chart closing basis. Below it lies the $1,959 February high.
Silver trades in one-year highs
The over 25% rally in the price of silver from just below the $20 per troy ounce mark is showing no signs of slowing down ahead of Wednesday’s key US inflation data release and looks to be on track for its fifth consecutive week of gains.
The April 2022 peak at $26.22 represents the next upside target, followed by the March 2022 high at $26.95. The advance is being supported by the March-to-April uptrend line at $24.95 and will remain valid while the last reaction low at $24.57, made on Thursday of last week, underpins on a daily chart closing basis.
Together with the $24.63 February peak it offers good support but isn’t expected to be revisited anytime soon as Wednesday’s break out of last week’s congestion range occurred to the upside.
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