Gold price and natural gas price falter, but Middle East tensions drive Brent crude price higher
Gold has dropped back from its peak seen earlier in the week, and natural gas is under pressure again. Meanwhile, oil price have been boosted by tensions in the Middle East.
Gold drops back from record high
Gold prices have edged off their recent highs, though the overall surge from the March low is still in place. Nonetheless, the price does look overextended in the short-term, being more than 8% above the 50-day simple moving average (SMA). This could point towards some short-term weakness, though we would need to see a close back below 2250 to suggest that might happen. The dollar strengthened on safe-haven buying last night as Middle East tensions rose, while comments from FOMC member Kashkari also lifted the US currency. This might point towards some additional gold weakness in the coming week.
Brent climbs above $90
Oil prices received a boost from reports of escalating tensions in the Middle East, as Israel recalled reservists and put its embassies on alert following the attack on an Iranian consulate earlier in the week. The price has moved above $90 for the first time, and further gains would target the October high at $92.75, while beyond this is the September peak at $95.33. As with gold, the price looks overextended in the short-term, and could see some weakness if the dollar continues to rally. Trendline support from the March low would be found closer to $87.
Natural Gas drops back
While oil prices have rallied, natural gas has faltered yet again. The price had moved higher earlier in the week, and indeed managed a move above the 50-day SMA, but it peaked on Wednesday and has moved lower since. In the short-term, recent support around 1730, the lows of March, could be tested, while below this lies the February low at 1600. Bulls will need a reversal and close back above 2000 to help revive expectations of further upside.
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.
