Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Gold and oil recover but lumber prices keeps falling as home sales demand dries up

While a weaker dollar has helped gold and oil, lumber prices continue on their downward trajectory.

Video poster image

Gold’s recovery continues

It may be that last week’s trip below the 200-day simple moving average (SMA) has been enough to tempt out the dip buyers.

After a straight-line move from the April high near $2000, the gold price has managed to stabilise around $1800, briefly heading below $1800 before rebounding.

Recent days have seen a back-and-forth between risk-on and risk-off days, but a short-term weakening of the US dollar has given gold the chance to rally back above the 200-day SMA.

Additional upside now targets $1863 and $1875, with a bigger move heading back to $1905. It would require a reversal below $1830 to suggest that a fresh test of the lows of mid-May is underway.

Gold chart Source: ProRealTime

WTI eyes bounce to fresh weekly high

Price gains here over the past few days have failed to carry the price back above last week’s high, but with risk appetite evidently recovering it is possible that a fresh test of $113 will result.

Sentiment around the global economy remains somewhat muted, not helped by lockdowns in China and the possibility of a recession in the US and elsewhere.

However, the continued war in Ukraine means that search for alternative supplies of oil to Russian output goes on. This may well offset any growing bearishness for the time being.

Further gains from current levels target $114.83, and then on towards $125 and the highs of early March. For the moment the bullish view appears to hold sway, and it would need a reversal back below $104 and the 50-day SMA to hand the sellers the initiative once again.

WTI chart Source: ProRealTime

Lumber slumps to new 2022 low

Lumber prices continue to be one of the big fallers of this market, dropping to a new low for the year as figures for US existing home sales revealed a slowdown in April.

The Federal Reserve’s fight against inflation, which has stepped up a gear with the introduction of 50 basis point (bps) rate hikes, and discussion of 75bps moves, this has driven a surge in US mortgage rates, hitting demand for both new and existing homes.

Having hit a new eight-month low, the price looks set for further declines. Even a rebound towards $800 would still leave the price below trendline resistance from the March highs, and would set up a lower high.

Below $663, the price heads towards $592, the low from around the time of the 2021 presidential election.

Lumber chart Source: ProRealTime

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.

  • 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
Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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.