. Daily Commodity Analysis - Brent steady at $65, Gold eyes $2,000 amidst uncertainty.

Daily Commodity Analysis – Brent steady at $65, Gold eyes $2,000 amidst uncertainty.

Daily Commodity Analysis – Brent steady at $65, Gold eyes $2,000 amidst uncertainty.

24 Nov 2023

Introduction:

In the commodities market update, Brent Crude Oil maintains stability ahead of an awaited OPEC+ decision on production levels. Both contracts are on track for their first weekly gain in five weeks, driven by optimism about potential OPEC+ supply cuts. Meanwhile, gold faces challenges amid increased US bond yields, while silver and copper exhibit stability and optimism, respectively, in response to market conditions and stimulus hopes.

Brent Crude Oil:

Brent remains stable in anticipation of the OPEC+ decision on oil production.

Brent crude futures remained unchanged on Friday as traders exercised caution in anticipation of an OPEC+ meeting that might lead to an agreement on additional supply cuts.

Both contracts were poised to achieve their initial weekly increase in five weeks, buoyed by optimism that the OPEC+ producer group led by Saudi Arabia might implement supply reductions to stabilize the market through 2024.

The OPEC and its allies, collectively referred to as OPEC+, unexpectedly announced on Wednesday the postponement of a ministerial meeting to November 30. This delay resulted from challenges among producers in reaching a consensus on production levels.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 81.28| Positive Crossover | Bullish
  • MA 20: 81.18| Positive Crossover | Bullish
  • MA 50: 82.29| Positive Crossover | Bullish

Simple:

  • MA 5: 81.11| Negative Crossover | Bearish
  • MA 20: 80.74| Positive Crossover | Bullish
  • MA 50: 81.94| Positive Crossover | Bullish

RSI (Relative Strength Index): 51.42| Buying Zone | Bullish

Stochastic Oscillator: 73.99| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 81.76 | R2: 85.03
  • S1: 79.67| S2: 76.96

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 82.52 | Take Profit: 85.03 | Stop Loss: 81.06.

Gold:

The price of gold finds backing from a more cautious risk sentiment and a declining US Dollar as the market anticipates US PMI data.

Gold prices face challenges in making significant advances on the final day of the week. Increased US bond yields create resistance for XAU/USD. However, the uncertainty surrounding Fed rates and a more cautious risk sentiment provide some support to the precious metal.

The price of gold (XAU/USD) faces difficulties in building upon the slight gains from the previous day and fluctuates within a tight trading range, remaining below the psychological threshold of $2,000 during the initial half of the European session.

Investors currently show hesitancy in making bold directional predictions and are looking for increased clarity regarding the Federal Reserve’s stance on interest rate hikes.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 1994.00 | Positive Crossover | Bullish
  • MA 20: 1986.45 | Positive Crossover | Bullish
  • MA 50: 1976.13| Positive Crossover | Bullish

Simple:

  • MA 5: 1993.81 | Positive Crossover | Bullish
  • MA 20: 1987.57| Positive Crossover | Bullish
  • MA 50: 1972.68| Positive Crossover | Bullish

RSI (Relative Strength Index): 63.34 | Buy Zone | Bullish

Stochastic Oscillator: 56.69| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 1999.89 | R2: 2047.55
  • S1: 1963.67| S2: 1928.40

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 2010.38 | Take Profit: 2047.55 | Stop Loss: 1987.50.

Elsewhere In the Commodity Market.

Silver remains within a tight trading range for the second consecutive day on Friday. Copper prices are poised for a weekly increase due to optimism about Chinese stimulus measures and tighter market conditions.

Gold up (0.17%) at 1995.49, Silver down (0.41%) at 23.72, Palladium up (0.5%) at 1050.24, Platinum up (0.18%) at 914.64, Brent Crude Oil up (0.22%) at 81.62, WTI Crude Oil down (0.53%) at 76.69 as of writing time.

Key Economic Events & Data Release Today:

(EUR) German GDP (QoQ) (Q3) Actual –0.1%, Forecast –0.1%, Previous 0.0% at 02:00.

(EUR) ECB President Lagarde Speaks at 05:00.

(CAD) Core Retail Sales (MoM) (Sep) Forecast –0.2%, Previous 0.1% at 08:30.

(CAD) Retail Sales (MoM) (Sep) Forecast 0.0%, Previous –0.1% at 08:30.