Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

WTI price weakens as gold price starts to find support

Gold starts to find support following recent declines, while WTI shows tentative signs of a potential bearish reversal ahead of June contract end.

Gold finds support after retracement into trendline support

Gold declines have taken us into an ascending trendline support once more, with the price appearing to respect it thus far. The wider gold outlook does provide a clear pattern of higher lows which is likely to continue despite the recent losses.

With that in mind, this deep retracement (61.8%-76.4%) does provide a potential bullish reversal point for this market. However, if we did move lower, such downside would likely be a short-term move into a deeper retracement. Thus a bullish outlook is in place unless the price breaks below the $1670 low.

WTI starts to show signs of weakness

WTI has seen an incredible rise throughout the past fortnight, with the drama of 21 April seemingly a distant memory. However, traders should be very aware of the possibility that we see fireworks once again at the end of the June contract (18 May). With the threat of another inventories-driven slump in WTI on that date, there is a good chance we start to see the prices reverse lower in the lead up to that event.

The price action seen thus far this week has shown a move out of the recent ascending channel, with the price currently drifting lower. There is no guarantee that the bearish sentiment takes hold from here, yet we are at least starting to show a sign that people see these levels as being potentially overly optimistic given the impending crunch in 11 days’ time. With that in mind, watch for a potential move lower from here, with a rally through $2658 required to signal a continuation of the recent uptrend. Until then, there is a good chance we could see the bears start to gradually find a foothold once more for WTI.

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.

React to volatility on commodity markets

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.

See opportunity on a commodity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a commodity?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Analyse and deal seamlessly on fast, intuitive charts
  • Get spreads from just 0.3 points on Spot Gold
  • See and react to breaking news in-platform

See opportunity on a commodity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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 spread betting and CFDs.

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