Gold price higher, but WTI crude price and natural gas price under pressure
Gold bounces off 50-day moving average
Spot gold rebound on Friday from the 50-day simple moving average (SMA) will raise hopes that a new move higher can begin.
The price has edged higher this morning, and a higher close today, above $2400, will bolster the bullish view and open the way to a possible test of recent highs.
Sellers will want to see a close below the 50-day SMA to negate this short-term bullish view, though the longer-term uptrend is still firmly in place.
WTI quiet after Friday slump
It was a choppy week for WTI crude oil prices, which rallied on Thursday before slumping again on Friday.
Hopes of a low being formed were dashed with Friday’s drop, and further losses below $76 put the price on course to test the June low.
Natural gas stumbles again
The natural gas price briefly moved to a new three-month low on Friday, but a recovery above 2060 leaves hopes of a low intact.
The past two weeks saw a bounce above 2200 fizzle out, so any longer-term rally must clear this hurdle. This would then open the way to the 100- and then 200-day moving averages.
A close back below last week’s low leaves the sellers in charge once more. Potential positive divergence on daily stochastics gives hope that a bounce can be sustained this time.