The price of gold has shown signs of stabilizing after a surge last week, while both crude oil and natural gas prices have taken a downturn, driven by concerns over China’s slowing consumption and a fragile housing market.
Gold Prices Settle After Recent Surge
Gold prices experienced a sharp increase last week, peaking at $2,726 per troy ounce—slightly surpassing the late November high of $2,720. However, this rally was short-lived, with the price dropping below the 55-day simple moving average (SMA) of $2,669. Gold has since entered a phase of low volatility, trading within a narrow range. Key support levels are seen around the $2,613 to $2,605 range, with the uptrend line from February to December providing further support at $2,603. Minor resistance is now observed near the September peak of $2,685.
WTI Crude Oil Faces Pressure from Economic Slowdowns
WTI crude oil prices fell back after briefly reaching $71.03 last week, coming close to the key resistance zone between $71.28 and $72.59. Concerns over slowing consumption in China and a fragile housing market in the country have weighed on market sentiment, contributing to the decline. The price is now testing the November low of $69.54, with a potential drop to the mid-October trough at $68.22 if this level is breached.
Natural Gas Prices Struggle to Maintain Gains
The recent recovery in U.S. natural gas prices, which started after a low of $2.939 in early December, appears to have stalled at last week’s high of $3.390. The uptrend line from August to December is now acting as support at $3.032. If this level fails to hold, natural gas prices could revisit the psychological $3.000 mark, with further support at the early December low of $2.939. Minor resistance is found around the October high of $3.141 and the December 9 high of $3.190.
Disclaimer
This report is prepared by IG Asia Pte Ltd (IGA) and its affiliates within the IG Group. It is for general circulation and does not take into account individual investment objectives or financial situations. Before making any trading decisions, investors should consult an independent financial adviser. IGA accepts legal responsibility for the report only to the extent required by law in jurisdictions where the research is distributed. The information provided should not be considered as a solicitation for transactions in any financial instrument.
Related topics：
The Dark Side of Gold Gifting This Christmas
