November 20, 2024 19:44 GMT
COMMODITIES: WTI Slides, Gold Further Extends Recovery
COMMODITIES
- WTI erased earlier gains to lose ground on the day, as pressure from a small build in US crude inventories offset concerns over escalations in the Russia-Ukraine war.
- WTI Dec 24 is down by 0.7% at $68.9/bbl.
- With a bearish theme in WTI futures still intact, attention remains on $65.74, the Oct 1 low, and $63.90, the Sep 10 low and key support.
- Meanwhile, Henry Hub has held most of its gains during today’s rally. Gains are driven by a cooling temperature trend at the end of the month and into early December, supported further by rising LNG export flows.
- US Natgas Dec 24 is up by 6.6% at $3.19/mmbtu.
- Elsewhere, spot gold has risen by another 0.8% to $2,652/oz on Wednesday, marking a third session of gains.
- The move comes amid the further increase in geopolitical tensions as Ukraine launched another long-range missile attack into Russia.
- Despite heightened geopolitical risk, analysts at Standard Chartered believe that macro factors, including the US dollar and rate-cut expectations, are likely to set the tone in the near term.
- The long-term trend condition in gold remains bullish, with the yellow metal piercing the 20-day EMA at $2,651.3 today.
- A clear break above it would highlight a possible reversal and signal the end of the recent bearish corrective cycle, opening $2,710.4, the Nov 11 high.
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