. Daily Commodity Analysis - Explore volatile commodity market shifts.

Daily Commodity Analysis – Explore volatile commodity market shifts.

Daily Commodity Analysis – Explore volatile commodity market shifts.

21 Feb 2024

Introduction

Gold prices climb in Asian trading as the dollar weakens ahead of the Federal Reserve’s minutes, offering insights into U.S. interest rates. Despite lingering uncertainty, gold hovers within a $2,000 to $2,050 range. Meanwhile, silver sees modest gains at $22.99, supported by lower US Treasury yields and a softer Dollar, facing resistance at $23.13-15. Oil prices rebound on Red Sea concerns and delayed U.S. rate cut expectations. Corn futures rise 3 cents higher, influenced by Dalian Corn Prices and positive export data.

Markets In Focus Today – GOLD

Gold prices advance as the dollar dips ahead of Fed minutes.

Gold prices rose in Asian trade on Wednesday, extending a recent rebound as the dollar retreated in anticipation of more cues on U.S. interest rates, most notably from the minutes of the Federal Reserve’s late-January meeting. Still, the yellow metal remained largely within a $2,000 to $2,050 an ounce trading range established over the past month, as the outlook for gold was clouded by the prospect of higher-for-longer U.S. interest rates. Focus was now squarely on the minutes of the Fed’s late-January meeting for more cues on the possible trajectory of U.S. interest rates.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2019.3988 | Positive Crossover | Bullish
  • MA 20 : 2022.2708 | Positive Crossover | Bullish
  • MA 50 : 2021.5199 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2015.3188 | Positive Crossover | Bullish
  • MA 20 : 2024.5121 | Positive Crossover | Bullish
  • MA 50 : 2033.7005 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 52.8636 | Buy Zone | Bullish

Stochastic   Oscillator : 51.0661 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2069.3814 R2 : 2087.5486
  • S1 : 2010.5686 S2 : 1992.4014

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 2032.61 | Take Profit: 2057.69 | Stop Loss: 2018.93

SILVER

XAG/USD prints slight gains yet remains below $23.00.

Silver rises slightly to $22.99, supported by lower US Treasury yields and a weaker Dollar, boosting demand for precious metals.Facing technical resistance at $23.13-15, with the 200-DMA at $23.28 posing a major obstacle for further gains.Downside risk if silver breaches $23, eyeing February’s lows; success above immediate resistances critical for upward momentum.Silver clings to minuscule gains late in the New York session on Tuesday, up 0.04%, and is trading at around $22.99 a troy ounce. Falling US Treasury bond yields and the Greenback are the main catalysts for the rise in precious metals, while technical resistance levels capped the XAG/USD upside.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 23.04 | Positive Crossover | Bullish
  • MA 20 : 22.81 | Positive Crossover | Bullish
  • MA 50 : 22.69 | Positive Crossover | Bullish

Simple :

  • MA 10 : 23.13 | Positive Crossover | Bullish
  • MA 20 : 22.81 | Positive Crossover | Bullish
  • MA 50 : 22.69 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 58.39 | Buy Zone | Bullish

Stochastic   Oscillator : 37.47 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 23.18 R2 : 23.77
  • S1 : 22.77 S2 : 22.24

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 23.05 | Take Profit : 23.68 | Stop Loss: 22.79

BRENT CRUDE OIL

Oil rises as investors weigh Red Sea attacks, US rate cut outlook.

Oil prices regained some ground in Asian trade on Wednesday amid concerns over attacks on shipping in the Red Sea and growing expectations that cuts to U.S. interest rates will take longer than thought. The Brent and WTI contracts fell 1.5% and 1.4% respectively from near three-week highs on Tuesday as the premium for prompt U.S. crude futures to the second-month contract more than doubled to $1.71 a barrel – its widest level in roughly four months U.S. crude inventories were seen up last week, while distillates and gasoline stockpiles were seen dropping, a preliminary Reuters poll showed on Tuesday.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 82.1536 | Positive Crossover | Bullish
  • MA 20 : 81.3675 | Positive Crossover | Bullish
  • MA 50 : 80.6415 | Positive Crossover | Bullish

Simple :

  • MA 10 : 82.3983 | Positive Crossover | Bullish
  • MA 20 : 81.3907 | Positive Crossover | Bullish
  • MA 50 : 79.3711 | Positive Crossover | Bullish

RSI (Relative Strength Index): 57.0762 | Buy Zone | Bullish

Stochastic   Oscillator : 87.7797 | Buy Zone | Negative

Resistance   And Support Levels :

  • R1 : 83.3603 R2 : 85.5650
  • S1 : 76.2230 S2 : 74.0183

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 80.92 | Take Profit: 83.49 | Stop Loss: 79.56

CORN

Corn Futures End 3c Higher on First Day Back.

The corn futures market faded from the session highs, but still closed 2 ¼ t 4 ¼ cents higher on out of the 3-day weekend. The March contract printed a 6 ¾ cent range on the day. Dalian Corn Prices were 14 to 17 yuan/MT (~6 cents/bu) weaker after the Lunar New Year break, while the Chicago Board of Trade was closed. Their May contract increased 35k contracts of OI, though March was down by 11.4k. The March contract settled at 2,355 yuan (~$8.31/bu). The weekly Export Inspections data showed 918,610 MT of corn was exported during the week that ended 2/15. That was up from 890k MT the week prior and was 47% above the same week last year. The weekly update also had 315.8k MT of sorghum exports. Corn shipments read 18.12 MMT as of 2/15, and accumulated mil exports were at 3.31 MMT.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.2359 | Negative Crossover | Bearish
  • MA 20 : 4.3062 | Negative Crossover | Bearish
  • MA 50 : 4.4640 | Negative Crossover | Bearish

Simple :

  • MA 10 : 4.2370 | Negative Crossover | Bearish
  • MA 20 : 4.3300 | Negative Crossover | Bearish
  • MA 50 : 4.4896 | Negative Crossover | Bearish

RSI (Relative Strength Index): 29.2091 | Sell Zone | Bearish

Stochastic   Oscillator : 10.9705 | Sell Zone | Neutral

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: 481.18 | Take Profit: 459.93 | Stop Loss: 496.56

Elsewhere In The Commodity Market

Gold is up (0.29%) at 2029.86, Silver is up (0.88%) at 23.15, Palladium is up (0.87%) at 986.04, Platinum up (0.78%) at 908.52, Brent Crude Oil up (0.28%) at 82.57, WTI Crude Oil up (0.25%) at 77.22 as of writing time.

Key Economic Events & Data Release Today:

(EUR) European Central Banking Non-monetary Policy Meeting at 03:00. (CAD) New Housing Price Index (MoM) (Jan) Forecast 0.1%, Previous 0.0% at 08:30. (USD) FOMC Meeting Minutes at 14:00.