WTI, gold and silver prices rally on fears of escalation in the Middle East

Fears of escalation in the Middle East lead to rise in oil, gold and silver prices.

Source: Bloomberg

Written by

Axel Rudolph FSTA

Senior Technical Analyst

Article publication date: 2024-04-16T11:31:14+0100

WTI rallies as fears of Middle East escalation increase

The WTI crude oil front month futures prices, which slid to a near two-week low at 83.60 on hopes of de-escalation in the Middle East, is heading back up again as an Israeli military response to Iran’s attack on its territory over the weekend looks to be in the offing. Front month WTI futures formed potentially bullish hammer on the daily candlestick chart which will only be validated by a daily chart close above Monday’s high at 85.54. In this case, the recent highs at 87.13 to 87.22 will be back in sight. Minor support can be found around last week’s 84.10 low. A fall through it would put the 83.12 mid-March high back on the cards.

Source: ProRealTime

Gold price attempts new record high

Spot gold, which on Friday hit a new all-time record high at $2,431 per troy ounce on heightened geopolitical tensions in the Middle East and consolidated below this level and dropped to $2,325 on hopes of de-escalation on Monday, is once again rallying on fears of an attack by Israel on Iran. A rise above Monday’s high at $2,392 would push last week’s record high at $2,431 back to the fore. Minor support lies at the 9 April high at $2,365.

Source: ProRealTime

Silver price trades at levels last seen in February 2021

The strong rally in the spot silver price has taken it to levels last traded in February 2021, to Friday’s $29.79 per troy ounce high, made close to the $29.86 August 2020 peak and the $30.09 February 2021 high on escalating Middle East tensions. These levels will be back in sight, should a rise above Monday’s high at $28.98 occur. Minor support below Wednesday’s $28.52 high can be spotted at its $27.53 low.

Source: ProRealTime

Live prices on most popular markets

Equities
Indices
Forex
Commodities

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

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

You might be interested in…

How much does trading cost?

Find out about IG

Plan your trading

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 spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

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. See full non-independent research disclaimer and quarterly summary.

Help and support

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. 

Professional clients trading spread bets and CFDs can lose more than they deposit.

Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.

Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.

The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.

Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.   

IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.   

The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Careers | Marketing partnership

WTI, gold and silver prices rally on fears of escalation in the Middle East

WTI rallies as fears of Middle East escalation increase

Gold price attempts new record high

Silver price trades at levels last seen in February 2021