WTI recoups recent losses while gold, silver on track for first weekly advance
Outlook on WTI, gold and silver as US debt ceiling bill is signed off and US dollar plummets.
WTI recoups some of this week’s losses ahead of OPEC+ meeting
WTI, which dropped by over 7% this week amid US debt ceiling negotiations and as data out of China showed a mixed picture, is regaining some of its lost ground as a US default has been averted and as OPEC+ meets this weekend.
Despite WTI rallying back to last Thursday’s low at $71.02, it is expected to end the week in negative territory.
Potential upside targets for next week can be seen along the April-to-June downtrend line at $72.68 and at the mid-May high at $73.30.
Minor support comes in at Wednesday’s $69.73 high and more significant support at the late May $67.12 low.
Gold recovery off six-month uptrend line has further to run
The price of gold is on track for its first weekly positive close in a month and is trying to reach the 55-day simple moving average (SMA) and April support line, now because of inverse polarity resistance line, at $1,991 to $1,994 per troy ounce.
As risk-on sentiment is back in play due to the US debt ceiling bill having been passed by both US Houses, the gold price may soon lose upside momentum. If so, the mid-April low at $1,970 is likely to be revisited. Below it lies the mid-May low at $1,952.
Silver set for first weekly advance in a month
The silver price is set to see its first weekly advance, following three consecutive weeks of lower prices, in bouncing off its two-month low at $22.68 per troy ounce.
The Caixin manufacturing index out on Thursday pointed to expansion in the Chinese manufacturing sector, opposite to official figures released on Wednesday, and helped the price of silver to rise.
The 19 May high at $24.01 is now within reach, a rise above which would eye the 55-day SMA at $24.30. Further up the late April low can be spotted at $24.50.
Minor support can be found at the 18 May trough at $23.33.
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