. Daily Commodity Analysis -Crude up, Silver down, Gold eyes $2,000.

Daily Commodity Analysis – Crude up, Silver down, Gold eyes $2,000.

Daily Commodity Analysis – Crude up, Silver down, Gold eyes $2,000.

06 Feb 2024

Introduction

WTI crude oil prices hover around $72.90 amid ongoing tensions in the Middle East. The US Dollar’s slight decline supports the uptick, but concerns about global supply disruptions due to Middle East tensions and Russia’s actions in Ukraine may limit the downside. Gold steadies near $2,000 as the dollar rally pauses, with the near-term outlook influenced by worries about prolonged US interest rates. Corn futures show mixed midday movement, rebounding from earlier weakness. Meanwhile, silver (XAG/USD) hit a two-week low at $22.25, dropping over 1.40%, impacted by rising US Treasury yields and Powell’s hawkish stance on interest rates.

Markets In Focus Today – CRUDE OIL

WTI recovers some lost ground near $73.00 amid ongoing Middle East tension.

WTI prices attract some buyers near $72.90 amid the ongoing Middle East tension. The upbeat US economic data might convince the Federal Reserve (Fed) to keep its benchmark rate higher for longer. The US launched retaliatory airstrikes on Friday against Iran’s Islamic Revolutionary Guard Corps and allied militias in Iraq and Syria. Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $72.90 on Tuesday. WTI prices edge higher on the modest decline of US dollars (USD). The downside of WTI prices might be capped by concerns that tensions in the Middle East and Russia’s ongoing invasion of Ukraine could curb global supplies.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 74.2361 | Negative Crossover | Bearish
  • MA 20 : 74.2010 | Negative Crossover | Bearish
  • MA 50 : 74.7017 | Negative Crossover | Bearish

Simple :

  • MA 10 : 75.3019 | Negative Crossover | Bearish
  • MA 20 : 74.1892 | Negative Crossover | Bearish
  • MA 50 : 73.3012 | Negative Crossover | Bearish

RSI (Relative Strength Index): 45.8300 | Neutral Zone | Neutral

Stochastic   Oscillator : 22.3991 | Sell Zone | Positive

Resistance   And Support Levels :

  • R1 : 78.6054 R2 : 80.9659
  • S1 : 70.9639 S2 : 68.6034

Overall Sentiment : Bearish Market Direction : Sell

Trade Suggestion: Limit Sell: 73.59 | Take Profit: 71.40 | Stop Loss: 75.09

GOLD

Gold prices stem losses as dollar rally pauses; $2,000 support eyed.

Gold prices steadied on Tuesday after tumbling sharply over the past week as a rally in the dollar paused for breath, with markets now watching for the yellow metal to potentially test a key support level. The near-term outlook for gold remained marred by persistent concerns over higher-for-longer U.S. interest rates, especially as markets began pricing the possibility that the Federal Reserve will keep rates static until June. Strong U.S. economic data and hawkish comments from Fed Chair Jerome Powell were the key drivers of this notion, with both factors triggering sharp declines in gold prices over the past two sessions.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2032.1869 | Negative Crossover | Bearish
  • MA 20 : 2032.2612 | Negative Crossover | Bearish
  • MA 50 : 2023.7393 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2030.6832 | Negative Crossover | Bearish
  • MA 20 : 2029.9753 | Negative Crossover | Bearish
  • MA 50 : 2034.6908 | Negative Crossover | Bearish

RSI (Relative Strength Index): 48.1221 | Buy Zone | Bullish

Stochastic   Oscillator : 43.4524 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 2069.3797 R2 : 2087.5470
  • S1 : 2010.5670 S2 : 1992.3997

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion : Stop Sell : 2024.77 | Take Profit : 2005.21 | Stop Loss : 2039.05

CORN

Corn Futures Mixed through Midday.

Corn recovered from overnight weakness at the day session open, and had rallied back to a net 2 ¼ cent gain for March. Prices have since pulled back into midday and are working fractionally mixed to a penny lower. USDA flashed a 155k MT corn sale to Mexico for 23/24 delivery this morning. The weekly inspection data showed 624.3k MT of corn was exported during the week that ended 2/1. That was down 33% from the week prior, but was 26% above the same week last year. Mexico was the top destination. Accumulated corn exports were pegged at 641.2 mbu as of 2/1, a 30% lead over last year’s pace.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.4232 | Negative Crossover | Bearish
  • MA 20 : 4.4571 | Negative Crossover | Bearish
  • MA 50 : 4.5809 | Negative Crossover | Bearish

Simple :

  • MA 10 : 4.4285 | Negative Crossover | Bearish
  • MA 20 : 4.4369 | Negative Crossover | Bearish
  • MA 50 : 4.5901 | Negative Crossover | Bearish

RSI (Relative Strength Index): 40.2352 | Neutral Zone | Neutral

Stochastic   Oscillator : 45.7086 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 4.6002 R2 : 4.6768
  • S1 : 4.3518 S2 : 4.2752

Overall Sentiment: Bearish Market Direction : Sell

Trade Suggestion: Limit Sell: 479.53 | Take Profit: 459.95 | Stop Loss: 492.58

SILVER

XAG/USD hits a two-week low, as a bearish-engulfing pattern emerges.

Silver drops over 1.40% hit by rising US Treasury yields and Powell’s hawkish stance.XAG/USD dips below the December 13 low, eyeing $22.00 for further decline risk.Failure to retake 100-DMA at $23.13 signals potential extended losses, with next support at the November 13 low of $21.88.A bounce above $22.50 may revive buying towards $23.00 and key daily moving averages. Silver price dives to a new two-week low of $22.25 and tumbles more than 1.40% in the day as US Treasury bond yields climb. Federal Reserve Chair Jerome Powell’s hawkish commentary, disregarding a rate cut in March and signaling three interest rate cuts, were enough to keep the Greenback bid. Therefore, precious metals fell and are extending their losses. The XAG/USD trades at $22.36 after hitting a high of $22.73.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 22.43 | Negative Crossover | Bearish
  • MA 20 : 22.82 | Negative Crossover | Bearish
  • MA 50 : 22.72 | Negative Crossover | Bearish

Simple :

  • MA 10 : 22.40 | Negative Crossover | Bearish
  • MA 20 : 22.82 | Negative Crossover | Bearish
  • MA 50 : 22.72 | Negative Crossover | Bearish

RSI (Relative Strength Index): 39.67 | Sell Zone | Bearish

Stochastic   Oscillator : 12.1 | Sell Zone | Positive

Resistance   And Support Levels :

  • R1 : 22.70 R2 : 23.23
  • S1 : 22.25 S2 : 21.58

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 22.54 | Take Profit: 21.90 | Stop Loss: 22.88

Elsewhere In The Commodity Market

Gold is up (0.02%) at 2025.34, Silver is up (0.11%) at 22.35, Palladium is up (1.00%) at 959.64, Platinum is up (1.11%) at 905.05, Brent Crude Oil is up (0.33%) at 78.28, WTI Crude Oil up (0.36%) at 73.08 as of writing time.

Key Economic Events & Data Release Today:

(CAD) Ivey PMI (Jan) Forecast 55.0, Previous 56.3 at 10:00. (CAD) Building Permits (MoM) (Dec) Forecast 1.8%, Previous –3.9% at 08:30. (NZD) Employment Change (QoQ) (Q4) Forecast 0.3%, Previous –0.2% at 16:45.