. Daily Commodity Analysis - Crude Oil & Gold Technical Update

Daily Commodity Analysis – Crude Oil & Gold Technical Update

Daily Commodity Analysis – Crude Oil & Gold Technical Update

01 Dec 2023

Introduction:

In the commodities market, oil prices decline post OPEC+ meeting, with scepticism causing a 3% overnight drop. Oil heads for a sixth week of losses as voluntary production cuts disappoint. Gold faces challenges amid modest gains, while silver surpasses $25.00, reaching a four-month high. Natural gas futures slide, and copper maintains stability after a strong November.

WTI Crude Oil:

Oil prices fall in response to the outcome of the OPEC+ meeting.

Despite OPEC+ announcing production cuts, scepticism among oil traders resulted in nearly a 3% drop in oil prices overnight.

On Friday, oil prices continued their decline, heading for a sixth consecutive week of losses. This follows the shortfall in market expectations due to the voluntary oil output cuts agreed upon by OPEC+ producers.

Brent prices traded below last week’s closing levels, while WTI managed to recover partially, trading slightly higher than the previous Friday’s level.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 76.38| Negative Crossover | Bearish
  • MA 20: 76.43| Negative Crossover | Bearish
  • MA 50: 77.16| Negative Crossover | Bearish

Simple:

  • MA 5: 76.89| Negative Crossover | Bearish
  • MA 20: 76.17| Negative Crossover | Bearish
  • MA 50: 76.50| Negative Crossover | Bearish

RSI (Relative Strength Index): 44.01| Neutral Zone | Neutral

Stochastic Oscillator: 22.64| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 78.10 | R2: 81.35
  • S1: 75.23| S2: 71.42

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 74.06 | Take Profit: 71.42 | Stop Loss: 75.85.

Gold:

The gold price faces challenges in extending modest intraday gains and is in anticipation of the US ISM PMI and a speech from Fed’s Powell.

Gold prices entice new buyers on Friday, finding support from expectations of a dovish Fed. The metal receives added backing amid escalating concerns about a potential global economic downturn.

On Friday, the gold price (XAU/USD) sees renewed buying interest, maintaining its modest intraday gains during the early European session, yet lacking strong follow-through. The precious metal stays close to its highest level since May 5, reached on Wednesday, and is presently trading around the $2,041-$2,042 range, marking a 0.25% increase for the day.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 2039.66 | Positive Crossover | Bullish
  • MA 20: 2023.80 | Positive Crossover | Bullish
  • MA 50: 2001.66| Positive Crossover | Bullish

Simple:

  • MA 5: 2039.38 | Positive Crossover | Bullish
  • MA 20: 2020.91| Positive Crossover | Bullish
  • MA 50: 1990.20| Positive Crossover | Bullish

RSI (Relative Strength Index): 71.46 | Buy Zone | Bullish

Stochastic Oscillator: 25.15| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 2042.39 | R2: 2082.52
  • S1: 2008.68| S2: 1963.74

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 2047.20 | Take Profit: 2082.52 | Stop Loss: 2024.73.

Elsewhere In the Commodity Market.

Silver (XAG/USD) breaches the crucial $25.00 threshold, attaining a four-month high at $25.25. Since the start of November, the December contract for natural gas futures on the Multi Commodity Exchange (MCX) has been experiencing a downward trend. Copper prices remain stable following a robust performance in November.

Gold up (0.21%) at 2040.70, Silver up (0.04%) at 25.26, Palladium down (0.84%) at 1015.46, Platinum up (0.88%) at 933.83, Brent Crude Oil up (0.32%) at 81.13, WTI Crude Oil up (0.41%) at 76.29 as of writing time.

Key Economic Events & Data Release Today:

(CNY) Caixin Manufacturing PMI (Nov) Actual 50.7, Forecast 49.3, Previous 49.5 at 07:15.

(EUR) Spanish Manufacturing PMI (Nov) Forecast 42.3, Previous 45.1 at 14:25.

(GBP) Manufacturing PMI (Nov) Forecast 46.7, Previous 44.8 at 15:00.

(EUR) ECB President Lagarde Speaks at 17:00.

(CAD) Employment Change (Nov) Forecast 15.0K, Previous 17.5K at 19:00.

(USD) ISM Manufacturing PMI (Nov) Forecast 47.6, Previous 46.7 at 20:30.

(USD) Fed Chair Powell Speaks at 21:30.