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Gold, WTI and aluminium prices continue to slide

Gold, WTI and aluminium outlook remains bearish ahead of the weekend.

​Gold continues to glide lower

The gold price continues its orderly descent after the US Federal Reserve chair, Jerome Powell’s appearance before the US Congress on Wednesday and Thursday in which he mentioned the possibility of a recession in the US and that his commitment to bringing down price increases is “unconditional.”

While the price of the precious metal remains below its 200-day simple moving average (SMA) at $1,844 per troy ounce, which capped it throughout this week, the mid-June low at $1,806 will remain in sight. Minor resistance above this week’s high at $1,848 can be found at the 16 June high at $1,857.

While the next higher current June highs at $1,874 to $1,877 cap, the last few months’ downtrend remains in place.

WTI about to enter its second negative week

West Texas Intermediate (WTI) crude oil has dropped by around 15% from its $121.43 early June high as demand worries have had a negative impact on its price.

Mounting concerns that rising interest rates aimed at curbing inflation may cause a slowdown in demand have pushed WTI down to its two-month support line at $104.43, around which the price of oil currently trades.

If this week’s low at $101.22 were to be slipped through on a daily chart closing basis, the psychological $100 mark, and the May low at $97.28 may be next in line.

Immediate downside pressure should be maintained while Tuesday’s high, the last reaction high (with a higher high than that seen the day before and after), at $110.82 isn’t overcome.

Minor resistance below this level can be seen at the 17 June low at $106.37 and also along the 55-day SMA at $108.33.

Aluminium trades in near one-year lows on demand woes

Aluminium’s swift descent due to worries of a potential global recession decreasing demand for the metal has taken it close to the July 2021 low at $2,421 which has been one of our downside targets for several weeks now.

Failure at $2,421 would put the June 2021 low at $2,355 on the cards. The immediate downtrend will remain intact while the price of aluminium stays below Tuesday’s high at $2,558 on a daily chart closing basis since it is the last reaction high on the daily chart.

Further resistance can be found at the December 2021 low at $2,582 and more significant resistance at the $2,649 16 June high. Immediate resistance sits at Monday’s $2,481 low.


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