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Oil, gold and silver prices rise on heightened geopolitical tensions in the Middle East

Outlook on WTI, gold and silver as US Navy destroys Houthi boats and Iran sends destroyer to Red Sea.

Oil pump image Source: Tradingview

WTI rises on first trading session of the year on heightened geopolitical tensions

Front month Oil - US Crude futures kicked off the new year by quickly rising by nearly 2%, to above 73.00, amid fears that heightened geopolitical tensions in the Middle East could disrupt supply. Over the weekend US Navy helicopters destroyed three Houthi boats whose crews apparently attempted to board a container ship in the Red Sea, prompting Iran to send a destroyer to the region.

The 22 November low at 73.83 represents the next upside target ahead of the 8 November low at 74.92.

Minor support can be found around Friday’s 72.67 high and also at its 71.33 low.

WTI Futures Daily Chart Source: ProRealTime
WTI Futures Daily Chart Source: ProRealTime

Gold price aims for last week’s three-week high

Spot Spot Gold’s advance from its mid-December $1,974 per troy ounce low has briefly exceeded the 2020, 2022 and May 2023 highs at $2,070 to $2,082 by rising to $2,088 on Thursday before giving back some of its recent gains and slipping to $2,059 on Friday.

Earlier today the precious metal resumed its ascent on increasing geopolitical tensions in the Res Sea and is on track to revisit last week’s $2,088 peak.

Only a fall through Friday’s $2,059 low would put the 21 December high at $2,055 and the mid-December high at $2,048 on the map.

Spot Gold Daily Chart Source: ProRealTime
Spot Gold Daily Chart Source: ProRealTime

Silver bounces off the 200-day simple moving average

Spot Spot Silver (5000oz)’s rally off last week’s $23.54 per troy ounce low, made between the 200- and 55-day simple moving averages (SMA) at $23.67 to $23.57, is gaining traction with the mid-December high at $24.29 being in focus. Further up sits the 22 December high at $24.60.

Support below Tuesday’s $23.78 intraday low comes in along the 200-day SMA at $23.67, ahead of the 55-day SMA and Friday’s low at $23.57 to $23.54.

Spot Silver Daily Chart Source: ProRealTime
Spot Silver Daily Chart Source: ProRealTime

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