Gold and Crude Oil: WTI stays weak near $56.00


  • Prices of WTI recede further and challenge the $56.00 mark.
  • The API will publish its report later today.
  • US CPI, Powell, trade drive global sentiment.

Prices of the West Texas Intermediate are extending the downside on Wednesday and are trading at shouting distance from the key $56.00 mark per barrel.

WTI focused on trade, OPEC+

WTI is down for the third consecutive session today after being rejected from the vicinity of the $58.00 mark. This area of resistance is well reinforced by the proximity of the 200-day SMA in the $57.30 region.

In the meantime, the lack of progress on the US-China trade front has been once again exposed after President Trump made no comments on the roll over of some existing tariffs and his potential meeting with China’s Xi Jinping at his speech on Tuesday. Trump reiterated, however, that a deal appears close.

Adding to the downbeat mood in crude oil, OPEC Secretary Barkindo deemed as premature any assessment on the need for extra oil output cuts ahead of the key meeting next month.

Later in the session, the American Petroleum Institute (API) will publish its weekly report on US crude oil supplies. In addition, traders will stay wary of the release of key US inflation figures for the month of October along with Chief Powell’s testimony.

Gold bounces off lows near $1,450

The ounce troy of the precious metal has managed to regain some poise after bottoming out in the vicinity of $1,450 earlier in the session. The resurgence of the risk-off sentiment has been fuelling the buying pressure in the safe havens like Gold and the Japanese yen and driving lower US yields.

WTI significant levels

At the moment the barrel of WTI is losing 0.93% at $56.27 and a breakdown of $56.00 (100-day SMA) would expose $55.64 (55-day SMA) and finally $53.71 (low Oct.31). On the upside, the next resistance lines up at $57.50 (monthly high Nov.5) followed by $60.00 (psychological handle) and then $60.94 (monthly high Jul.11).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD consolidates losses below 1.3150 amid a tighter election poll

GBP/USD is trading below 1.3150, consolidating its losses after YouGov's MRP poll showed a tighter Conservative majority ahead of the UK elections on Thursday. Trade headlines and the Fed decision are also awaited.

GBP/USD News

EUR/USD remains pressured below 1.11 amid trade uncertainty, ahead of the Fed

EUR/USD is trading below 1.11, consolidating its gains. Uncertainty about the planned US tariffs on China looms and tension is mounting ahead of US inflation and the all-important Fed decision.

EUR/USD News

Forex Today: Boris gets a blow from big poll, tariff threat looms, focus on the Fed

President Donald Trump has yet to decide on the December 15 tariffs, according to the Wall Street Journal. On the other hand, the paper says that negotiators are laying the groundwork for a deal.

Read more

Gold stalls two-day winning streak on the Fed day, trade jitters continue

Gold prices register a mild loss of -0.05% while hovering below $ 1465 on Wednesday. The yellow metal seems to have lacked buying interest ahead of the key monetary policy meeting by the US Federal Reserve (Fed).

Gold News

USD/JPY: 200-hour EMA questions immediate rising trend-channel

USD/JPY recently took a U-turn from 200-hour Exponential Moving Average (EMA). Even so, it stays well within the two-day-old rising trend-channel formation. The pair trades around 108.75 at the press time on Wednesday.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures