September 23, 2024 18:50 GMT
COMMODITIES: WTI Slides As Optimism Fades, Gold Extends Gains
COMMODITIES
- Despite the ongoing headlines regarding rising tensions in the middle east, WTI futures turned lower on Monday, as bearish themes of the month take over.
- WTI Nov 24 is down 0.9% at $70.4/bbl.
- Iran’s seeming willingness to de-escalate tensions in the Middle East added some risk off sentiment despite greater attacks between Lebanon and Israel.
- We have noted that the recovery in WTI futures since Sep 9 has appeared up to this point to be a technical correction, with moving average studies remaining in a bear-mode set-up, highlighting a dominant downtrend.
- A reversal lower would refocus attention on $64.61, the Sep 10 low and bear trigger.
- Meanwhile, spot gold has edged up by 0.2% to $2,627/oz today, having earlier in the session reached another all-time high at $2,634.
- With a bullish structure still in place for gold, focus is on $2,642.7 next, a Fibonacci projection.
- In contrast, silver has fallen by 1.4% to $30.8/oz.
- The recent break key short-term resistance at $30.192, the Aug 26 high, signals scope for an extension towards $31.754, the Jul 11 high. Key short-term support has been defined at $27.686, the Sep 6 low.
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