WTI and gold expected to diverge after recent losses

Gold declines are unlikely to last, while WTI is expected to continue its slide.

​Gold eases back into Fibonacci support

Gold has been easing back over recent trading days, with the price falling back into trendline and 61.8% Fibonacci support ($1690). The wider trend remains very clear for gold, with further upside expect before long.

With the stochastic crossing back through the 20 mark, there is a good chance we could start to see momentum turn in the favour of the bulls once again. With that in mind, a bullish outlook is in play here, with a break below $1660 required to negate that view.

WTI bears back in the driving seat

WTI gains have proven short-lived, with the consolidation seen from Thursday to Monday ultimately proving to be a topping pattern. The breakdown below $1648 provided us with a sell signal, with the price heading lower since.

With that in mind, further downside looks likely as long as we continue to create lower highs. While we are just three days from the OPEC+ production cuts, the issue of overproduction and a lack of storage means WTI will likely continue to come under continued pressure unless another major output cut is announced. ​


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Speculate on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.