COMMODITIES: WTI Pulls Back, Gold Rises To Fresh Record High
- WTI has unwound a portion of yesterday’s gains as the market reassesses demand-side pressures owing to the feared US-China trade war.
- WTI May 25 is down by 3.6% at $60.1/bbl.
- The EIA has cut its forecast for global oil demand in 2025 by 0.5m b/d to 103.6m b/d, according to its April Short-Term Energy Outlook.
- A bearish theme in WTI futures remains intact and a continuation of weakness would open $54.26, a Fibonacci projection. Initial firm resistance is seen at $64.85, the Mar 5 low and a recent breakout level.
- Meanwhile, spot gold has extended gains today, with the yellow metal currently up by 2.9% at $3,171/oz, just below a fresh record high of $3,175 reached earlier in the session.
- Today’s move takes total gains for gold over the last two sessions to over 6% as safe haven demand has resurfaced amid concerns about the mounting trade tensions with China.
- UBS remains quite positive on gold, saying that the next leg up will come when the Fed steps in.
- The trend condition in gold remains bullish with sights on $3,196.2 next, a Fibonacci projection, followed by $3,200.00 round number resistance.
- Elsewhere, Henry Hub is trading lower, with an above-average build in US inventories and weaker demand adding pressure. US Natgas May 25 is down by 6.7% at $3.56/mmbtu.
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