Gold price and natural gas price fall back but WTI crude price still holding gains
Bullish momentum ebbs for gold price
The spot gold price failed to make any real headway on Friday, though it finished off the lows once more, as it had done the previous two sessions.
However, early trading this morning has seen it drop back, matching the declining momentum indicators of stochastics and moving average convergence/divergence (MACD). The previous sustained decline in MACD in late August merely led to consolidation.
In the event of continued losses, previous highs around $2600.00 and then $2531.00 could be support.
WTI holds gains due to Middle East tension
Energised by developments in the Middle East, the WTI crude oil price saw strong gains last week, taking it to its highest level in just over a month.
Friday’s session witnessed the price push to a new one-month high, but it failed to hold its gains in the short-term. News flow, particularly any Israeli attack against Iran, may well provide fundamental support in the short-term. Further gains head towards the 200-day simple moving average (SMA), and the late August high at $77.00.
Any lessening of tensions might see a lower high created, with a close back below $72.00 and also below the 50-day SMA potentially igniting a new drop.
Natural gas drops back
The strong rally in natural gas finally hit some selling on Friday, witnessing a reversal after days of gains.
Now we have to wait to see if more downside results, and whether the price tests trendline support from late August. Having returned to the spring highs so quickly, some consolidation would not be surprising. However, the outlook remains firmly in the bullish camp for the time being.