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​​​WTI, gold and copper prices try to hold near support

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Outlook on WTI, gold and copper amid China demand concerns.

BG_copper_018230981230.jpgSource: Bloomberg
 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 16 August 2023 11:39

WTI slide found support

WTI’s around 2% slide on Tuesday on concerns over weak Chinese demand and stronger-than-expected US retail sales data seems to have short-term ended slightly above the minor psychological $80.00 mark on Wednesday morning. The solid US data stoked fears that the Federal Reserve (Fed) could keep interest rates higher for longer, likely negatively impacting economic growth and reducing energy demand in the world’s top oil consumer.

While the breached June-to-August uptrend line, now because of inverse polarity a resistance line, at $82.26 isn’t bettered, short-term downside pressure in the oil price is likely to prevail. A fall through last week’s low at $79.69 would engage the early August low at $78.54.

original-size.webpSource: ProRealTime

Gold descent pauses near support

The one-month decline in the price of gold seems to have found interim support slightly above the $1,893 June low and is now flirting with the 200-day simple moving average (SMA) at $1,906.

Further potential resistance comes in along the July-to-August downtrend line at $1,908. While below it, overall downside pressure should retain the upper hand, though. A fall through the June low at $1,893 would put the mid-March low at $1,886 on the map.

original-size.webpSource: ProRealTime

Copper seems to have found interim support

The copper price, which has been in a downward trajectory since its $8,859 per ton early August high on China growth concerns, seems to have found interim support marginally above its $8,142 late June low.

A minor bounce towards the July and 8 August lows at $8,236 to $8,277 may ensue over the next few days but the medium-term trend nonetheless remains bearish. A fall through the $8,142 late June low would push the May trough at $7,867 to the fore.

original-size.webpSource: ProRealTime
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