WTI, natural gas, and gold rally
The short-term outlook on WTI, natural gas, and gold is bullish.
Gold gradually heading back up again
Gold continues to trade around its September 2021 $1,722 per troy ounce low and edges higher on Tuesday, benefitting from recent weakness in the US dollar and US Treasury yield amid mounting recession risks.
For further upside to materialise, a rise and daily chart close above the $1,739 high seen last week would need to be witnessed in which case the 8 July high at $1,752 would be in focus. Much further up lies the May trough at $1,786.
Slips should find support around the mid-July low at $1,698 below which lies key support between the August 2021 low at $1,684, last week’s low at $1,681 and the June 2020 and March 2021 lows at $1,678 to $1,671.
In line with several other commodities gold is still trading well below pre-Russian invasion of Ukraine levels as the US dollar has reached multi-decade highs on safe-haven flows.
Natural gas continues its swift ascent as Russia reduces gas flows to Europe
Natural gas futures have so far rallied by over 60% from their 5 July three-month low at $5.33 whilst on their way to the early May high at $9.01 as Russia reduced the flow of gas through the Nord Stream 1 pipeline to 20% on Monday.
Above the early May high sit the late May and June highs at $9.43 to $9.53 as well as the minor psychological $10 mark.
Support is seen along the one-month support line at $8.27 and also at the 16 June high at $8.
WTI nears its two-month downtrend line
West Texas Intermediate (WTI) crude oil is heading back up towards its two-month downtrend line at $98.65 on near-term supply tightness and as tensions between the West and Russia remain elevated as G7 nations prepare to impose a price cap on Russian oil.
If broken through, last week’s high at $100.90 would be eyed next, together with the June low at $101.22 and the 8 July high at $103.00.
Minor support comes in along the 200-day simple moving average (SMA) at $94 and at Monday’s $92.56 low. Much further down lies the current July trough at $88.55.
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