WTI rallies on tightening supply while gold and natural gas prices slide
Outlook on WTI, gold and natural gas as bank concerns fade.
Yesterday’s strong rally in WTI losing upside momentum
The over 5% rally in the price of WTI, on the back of a legal dispute which blocked around 4 000 000 barrels a day of oil exports out of Turkey and tightened supply, is taking a breather around the January and February lows at $72.50 to $72.64.
Slips should find support around Thursday’s $71.68 high and at the December $70.25 low whereas resistance sits at the 22 February low at $73.85 and along the November-to-March continuation triangle support line, now resistance line, at $74.48.
Gold slips as market sentiment improves
Gold’s slip from late last week’s $2,003 per troy ounce high, made marginally below its one-year high at $2,009, is still pointing towards last week’s low at $1,935 as sentiment improves and bank concerns fade with the Deutsche Bank share price regaining the majority of Friday’s steep over 8% losses.
Better-than-expected German IFO business climate data for March also helped risk-on sentiment which led to flows out of gold and into equities taking place. The business climate indicator for Germany increased to 93.3 in March, its highest level since February 2022, compared to 91.1 in February.
Were last Wednesday’s low at $1,935 to be slipped through, the 13 March high at $1,914 would be next in line. The all-time March 2022 high at $2,070 lies above the key $2,003 to $2,009 resistance zone.
US natural gas futures continue their descent
US natural gas futures are tumbling further towards their $2.105 late February low on forecasts for milder weather and as the EIA recently forecast 2.4% less US natural gas consumption in 2023 compared to 2022.
US natural gas prices dropped by around 75% from their $9.977 August 2022 peak and remain on track to reach the February low at $2.105, below which lies the psychological $2.000 mark.
Resistance comes in along the March downtrend line at $2.290 and at Friday’s $2,363 high. Further resistance sits between the mid-March lows at $2.455 to $2.457.
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