May 24, 2024 18:24 GMT
Gold Set For Biggest Weekly Decline Since December
COMMODITIES
- WTI has rebounded today but remains around 2.7% lower on the weak. Expectations of an OPEC+ output cut extension are weighing against potential Fed rate cut delays and sluggish demand.
- WTI Jul 24 is up 1.3% on Friday at $77.9/bbl.
- For WTI futures, scope is seen for a move to $75.64, the Mar 11 low. Key resistance and the bull trigger is at $86.16, the Apr 12 high.
- Henry Hub has fallen to its lowest level since May 17 as front month readjusts following a sustained rise throughout May.
- US Natgas Jun 24 is down 3.8% at $2.56/mmbtu.
- Spot gold has edged up by 0.3% to $2,336/oz on Friday, leaving the yellow metal 3.3% lower on the week, which would be the largest weekly decline since December.
- The trend structure for gold remains bullish and the move lower appears to be a correction - for now.
- On the upside, attention is still on $2,452.5, a Fibonacci projection. The 50-day EMA, at $2,298.5, represents a key support.
- Meanwhile, copper is down by 0.7% today, bringing total losses this week to 5.7%, after the red metal hit a record high on Monday.
- Analysts at Macquarie say that increased demand for copper globally is being offset by slower demand growth in China. In their view, the recent rally appears overdone and the risk of a sharp correction is very high.
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