WTI recoups recent losses while gold, silver on track for first weekly advance

​​​WTI recoups some of this week’s losses ahead of OPEC+ meeting

WTI, which dropped by over 7% this week amid US debt ceiling negotiations and as data out of China showed a mixed picture, is regaining some of its lost ground as a US default has been averted and as OPEC+ meets this weekend.

​Despite WTI rallying back to last Thursday’s low at $71.02, it is expected to end the week in negative territory. ​

Potential upside targets for next week can be seen along the April-to-June downtrend line at $72.68 and at the mid-May high at $73.30. ​

Minor support comes in at Wednesday’s $69.73 high and more significant support at the late May $67.12 low.

​Gold recovery off six-month uptrend line has further to run

​The price of gold is on track for its first weekly positive close in a month and is trying to reach the 55-day simple moving average (SMA) and April support line, now because of inverse polarity resistance line, at $1,991 to $1,994 per troy ounce.

​As risk-on sentiment is back in play due to the US debt ceiling bill having been passed by both US Houses, the gold price may soon lose upside momentum. ​If so, the mid-April low at $1,970 is likely to be revisited. Below it lies the mid-May low at $1,952.

​Silver set for first weekly advance in a month ​

The silver price is set to see its first weekly advance, following three consecutive weeks of lower prices, in bouncing off its two-month low at $22.68 per troy ounce. ​

The Caixin manufacturing index out on Thursday pointed to expansion in the Chinese manufacturing sector, opposite to official figures released on Wednesday, and helped the price of silver to rise.

​The 19 May high at $24.01 is now within reach, a rise above which would eye the 55-day SMA at $24.30. Further up the late April low can be spotted at $24.50. ​

Minor support can be found at the 18 May trough at $23.33.