WTI and gold prices gain ground as the dollar weakens
Gold and WTI gain ground as the dollar weakens, but can crude continue its rise as oversupply remains a key concern?
Gold pushes higher after Fed continue their accommodative approach
Gold has started to reverse higher once more, following a retracement into the 61.8% Fibonacci support level. Given the wider uptrend seen over the past 20 months, there is a good chance we will see further upside from here.
As such, the fact that we are seeing some downside come into play now could be a good opportunity to look for longs, with a break below the $1709 level required to bring about a more bearish short-term picture. Until that level is broken, short-term downside is viewed as a buying opportunity. However, even if that happens, the wider outlook would signal such a breakdown as being a likely retracement of the rally from $1660. Thus, a wider bullish outlook remains in play unless $1660 is broken.
WTI regains ground as markets react to drug trial results
WTI has managed to break higher following positive news on the fight against the coronavirus, with the price breaking through the $18.92 resistance level. Whether this holds remains to be seen, as we remain within an environment of oversupply despite the Organisation of the Petroleum Exporting Countries Plus (OPEC+) cuts that are due to start on Friday.
Watch for whether we can maintain this short-term uptrend, with trendline support providing a key element to this path higher. There is a chance we will see further short-term gains given the current respect on this line. However, should the price break below, there is a chance we start to see this rebound ease off.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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
