April 19, 2024 18:34 GMT
Spot Gold Pares Gains As Geopolitical Risks Ease
COMMODITIES
- Spot gold spiked to an intra-day high $2,418/oz early in Friday’s session following Israel’s missile strike on Iran, before paring gains as Iran downplayed the attack.
- The yellow metal is currently up 0.7% to $2,395 on the day, taking the weekly gain to 2.2%.
- The technical outlook for gold is still bullish and the next objective continues to be at $2452.5, a Fibonacci projection. Initial firm support is at $2293.4, the 20-day EMA.
- Meanwhile, silver has risen 1.7% to $28.7/oz on Friday, taking the weekly gain to around 3%.
- Copper has also rallied further today, rising another 1.3% to $449/lb, taking the weekly gain to 5.5%, driven by an improving outlook for global manufacturing and mine disruptions.
- WTI crude is headed for the US close 2.9% lower on the week, amid an easing geopolitical risk premium as fears of a further escalation of the Iran-Israel conflict reduced through Friday.
- WTI May 24 is up 0.5% at $83.2/bbl.
- A bull theme in WTI futures remains intact, although this week’s move lower signals the start of a short-term bearish corrective cycle.
- The contract has traded through the 20-day EMA and this signals scope for an extension towards the 50-day EMA, at $80.64. On the upside, key resistance and the bull trigger has been defined at $86.97, the Apr 12 high.
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