WTI and gold expected to diverge after recent losses

Gold declines are unlikely to last, while WTI is expected to continue its slide.

​Gold eases back into Fibonacci support

Gold has been easing back over recent trading days, with the price falling back into trendline and 61.8% Fibonacci support ($1690). The wider trend remains very clear for gold, with further upside expect before long.

With the stochastic crossing back through the 20 mark, there is a good chance we could start to see momentum turn in the favour of the bulls once again. With that in mind, a bullish outlook is in play here, with a break below $1660 required to negate that view.

WTI bears back in the driving seat

WTI gains have proven short-lived, with the consolidation seen from Thursday to Monday ultimately proving to be a topping pattern. The breakdown below $1648 provided us with a sell signal, with the price heading lower since.

With that in mind, further downside looks likely as long as we continue to create lower highs. While we are just three days from the OPEC+ production cuts, the issue of overproduction and a lack of storage means WTI will likely continue to come under continued pressure unless another major output cut is announced. ​

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Trade 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

1In the case of all DFBs, there is a fixed expiry at some point in the future.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.