CFDs are complex instruments. 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. 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.

WTI price on track for second straight weekly loss, platinum nears key support, gold muted

Technical outlook on WTI as it heads for second consecutive weekly loss amid release of massive strategic oil reserves. Platinum meanwhile off 20% from its March high and nearing key support while gold remains sidelined.

WTI heads for second straight weekly loss

WTI continues to decline and is on track to see its second consecutive weekly drop in the wake of International Energy Agency (IAE) members' massive strategic oil reserve taps and demand concerns in China due to Covid-19 lockdowns.

A release of 60 million barrels of oil from strategic reserves has been agreed which comes on top of the 180 million barrels the US released last week.

WTI’s slip through its five-month uptrend line, 55-day simple moving average (SMA) and the psychological $100 mark has taken the price of oil close to the mid-March low at $92.45. Failure there would put the $90 region back on the cards.

Above the 55-day SMA and breached uptrend line at $98.06 to $99.20 resistance can be found at this week’s high at $104.80.

Platinum is slipping towards key long-term support in the $900 region

The price of platinum has already dropped by around 20% from its early March $1,183 Russian invasion of Ukraine peak and is seen heading down towards the 200-week SMA at $934.63.

Below it lies a key long-term support zone which goes back to May 2017 and comes in at $915 to $891.

While yesterday’s low at $945 holds, though, a minor bounce back towards the mid-March low at $983 may ensue.

While the precious metal remains below its 30 March high at $1,005 on a daily chart closing basis, the downtrend remains intact.

Gold continues to be sidelined

The volatility has seeped out of the price of gold with it continuing to trade in a tight range while remaining below Thursday’s $1,950 high as investors mull over additional sanctions on Russia.

Strong support remains to be seen between the 55-day SMA and the mid- to late March lows at $1,901 to $1,891 while significant resistance can be spotted in the $1,959 to $1,974 region. It consists of the September and November 2020, January 2021, and February 2022 highs and as such is expected to again cap, if revisited.

The decreasing volatility is reflected by converging Bollinger Bands which need to be closely watched in the days to come as they can give an early indication of volatility increasing again with sharp moves in the price of gold occurring once more.

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

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.