WTI rises on China stimulus package but gold and silver retrace lower
Outlook on WTI, gold and silver amid appreciating U.S. dollar.
WTI rises on China stimulus package
WTI is heading back up towards the 200-day simple moving average (SMA) at $76.68 following an announcement by Beijing that it will introduce measures to help boost sales of automobiles and electronics with the aim of shoring up its sluggish economy. Above the 200-day simple moving average (SMA) at $76.68 sits last week’s high at $77.17 which is back in focus. These levels are expected to be reached provided that this week’s low at $73.78 holds. It was made close to the mid-May and early June highs at $73.89 to $73.82. Above $73.78 lie the June-to-July support line at $75.02 and Thursday’s low at $74.51. Should $73.78 be fallen through, however, minor support around the $72.70 late June high may be reached instead.
Gold comes off its two-month high as the U.S. dollar regains lost ground
Several times this week the gold price tried to overcome the $1,983 per troy ounce June peak but so far to no avail. The recovering U.S. dollar has led to the precious metal short-term topping out at $1,987 on Thursday with it sliding back towards the July support line and 55-day simple moving average (SMA) at $1,958 to $1,957. Further down lies Monday’s low at $1,946 which may also be reached, provided that $1,987 caps. While the $1,946 Monday low underpins, however, the medium-term uptrend remains intact.
Silver consolidates below its two-month high
Silver’s swift advance to its $25.26 per troy ounce two-month high has lost upside momentum as the greenback is regaining recently lost ground. A slip back to Monday’s $24.61 low may thus be on the cards, a drop through which would engage the late April low and June high at $24.52 to $24.50 which are likely to hold. If not, a more pronounced decline may take the precious metal to the mid-June high at $24.21. Above Thursday’s high at $25.26 lie the 20 April high at $25.49, followed by the April and May peaks at $26.09 to $26.13.
Related articles
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.
