Oil drops as China, winter demand worries offset boost from supply cuts.

On Thursday, oil prices declined as concerns about supply due to extended production restrictions in Saudi Arabia and Russia overcame concerns about demand due to a cyclical slowdown throughout the winter and an unclear economic picture for China.

The world’s two largest oil exporters, Saudi Arabia and Russia extended voluntary production cutbacks through the end of the year, which caused both benchmarks to soar earlier in the week. These came in addition to the April cuts that certain OPEC+ producers agreed to implement through the end of 2024.

As U.S. rate worries weigh, gold prices remain close to a 10-day low.

The dollar’s strength and Treasury yields put pressure on gold prices on Thursday, and evidence of sticky inflation increased worries that the Federal Reserve would stay to its hawkish stance.

Data also indicated some resilience in the American economy, which reduced demand for gold as a haven despite rising expectations that the nation will avoid a recession this year.

Due to weak China trade data, copper prices declined. Copper prices among industrial metals decreased on Thursday as trade data from China suggested persistent economic weakness in the world’s biggest copper importer.

The XAG/USD Silver Spot price finished at $23.00 on Wednesday as expectations for a more aggressive Federal Reserve (Fed) for the balance of the year increased in response to reports of robust US economic activity.

Gold up (0.15%) at 1919.16, Silver down (0.25%) at 23.09, Palladium down (0.91%) at 1208.38, Platinum down (1.31%) at 962.73, Brent Crude Oil down (0.44%) at 90.22, WTI Crude Oil down (0.42%) at 87.16 as of writing time.

GOLD: TECHNICAL OVERVIEW

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 1921.54, indicating a Sell signal.
• EMA 20: The 20-day EMA is at 1928.52, signalling a Sell sentiment.
• EMA 50: The 50-day EMA currently sits at 1925.45, suggesting a Sell indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 1920.84, reinforcing the Sell recommendation.
• SMA 20: With a value of 1935.47 the 20-day SMA also supports a Sell sentiment.
• SMA 50: The 50-day SMA registers at 1918.47, affirming a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 41.52, signifying a Neutral signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a Neutral stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 1925.45
• Support: The support level is identified at 1916.15

Summary And Trade Suggestions

In summary, the technical analysis of gold points towards a Sellsentiment. Considering the indicators, moving averages, and oscillators, it seems favourable for traders to enter a short position.

Trade Suggestion:

• Stop Sell: 1913.90
• Take Profit: 1902.03
• Stop Loss: 1922.24

WTI CRUDE OIL: TECHNICAL OVERVIEW

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 86.98, indicating a Buy signal.
• EMA 20: The 20-day EMA is at 85.18, signalling a Buy sentiment.
• EMA 50: The 50-day EMA currently sits at 83.06, suggesting a Buy indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 87.01, reinforcing the Buy recommendation.
• SMA 20: With a value of 85.08 the 20-day SMA also supports a Buy sentiment.
• SMA 50: The 50-day SMA registers at 81.95, affirming a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 73.72, signifying a positive signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a Neutral stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 87.98
• Support: The support level is identified at 86.09

Summary And Trade Suggestions

In summary, the technical analysis of WTI crude Oil towards a Buy sentiment. Considering the indicators, moving averages, and oscillators, it seems favourable for traders to enter a long position.

Trade Suggestion:

• Stop Buy: 89.39
• Take Profit: 92.69
• Stop Loss: 87.03