Gold and WTI crude prices rise on Middle East conflict, and natural gas price holds gains
Gold boosted by haven flows
The spot gold price reversed course in early trading yesterday but then recovered on haven buying following the attacks on Israel by Iran.
Early trading this morning has seen the price edge lower, with buyers for the moment unable to establish clear momentum to the upside. A period of consolidation may result here, though the overall trend is intact and fresh record highs are still just a short distance away.
A close below $2600.00 would put the price below trendline support and below the previous high, perhaps suggesting a more substantial pullback is at hand.
WTI surges on Middle East conflict
The attacks in the Middle East have given WTI crude oil the catalyst for a bounce, with more gains possible as the world awaits an Israeli response to the attack.
The price has succeeded in forming a higher low over the past week compared to early September, and now looks set to challenge the $72.00 area, which has been both support and resistance in recent months.
Notably the price has held below the 50-day simple moving average (SMA) since August, so a close above this (currently $72.54) might signal a new leg higher towards the late August peak.
Natural gas holds near highs
The natural gas rally shows no sign of slowing down, reaching fresh highs this week as it pushes back to the peaks of May and June.
While overextended in the short-term, the price has shown no sustained signs of a reversal. Weakness last week was cancelled out by Friday’s rally, further reducing the bearish case.
In the short-term, the highs of May and June around 3100 come into view, and a longer-term higher high will be created if the price achieves a move through this zone.