. Daily Commodity Analysis - Exploring Surging Oil, Gold, Gas, and Corn Markets.

Daily Commodity Analysis – Exploring Surging Oil, Gold, Gas, and Corn Markets.

Daily Commodity Analysis – Exploring Surging Oil, Gold, Gas, and Corn Markets.

15 Dec 2023

Introduction

In today’s comprehensive exploration of the commodity landscape, we delve into the latest developments shaping the markets for crude oil, gold, natural gas, and corn. From the resurgence of oil prices to gold’s ascent driven by a dovish Fed, and the intriguing dynamics in natural gas and corn, this overview provides valuable insights for traders and investors. Additionally, we spotlight the recent COP28 climate summit in Dubai, which defied expectations by securing a groundbreaking deal amid challenges. Join us as we analyze technical indicators, trade suggestions, and key economic events, offering a nuanced perspective on the multifaceted world of commodities.

Markets In Focus Today – Crude

“Oil Prices Poised for First Weekly Gain in Two Months: Positive Signs Emerge in Market Trends”

Oil prices rose on Friday, heading for their first weekly gain in two months. Brent futures climbed 21 cents to $76.82 a barrel, and U.S. West Texas Intermediate (WTI) crude rose 20 cents to $71.78. The uptick followed a bullish outlook from the International Energy Agency (IEA) on 2024 oil demand and a weakening U.S. dollar. The Federal Reserve’s indication of likely future interest rate cuts also contributed to the positive trend. Analysts suggest that improved liquidity conditions post-Fed announcement could lead to a ‘demand-pull’ in oil prices. A four-month low for the dollar on Thursday further made dollar-denominated oil more attractive to foreign buyers. Despite weak economic data from China, including the lowest refinery runs since early 2023, better-than-expected industrial output and retail sales offered relief amid the country’s ongoing economic recovery from the COVID-19 pandemic.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 76.40 | Positive Crossover | Bullish
  • MA 20 : 77.99 | Negative Crossover | Bearish
  • MA 50 : 81.49 | Negative Crossover | Bearish

Simple :

  • MA 10 : 75.72 | Positive Crossover | Bullish
  • MA 20 : 78.45 | Negative Crossover | Bearish
  • MA 50 : 83.09 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 43.35 | Neutral Zone | Neutral

Stochastic   Oscillator : 30.41 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 85.87 R2 : 88.51
  • S1 : 66.95 S2 : 64.93

Overall Sentiment : Bearish Market Direction: Sell

Trade Suggestion: Limit Buy: 66.95 | Take Profit: 64.93 | Stop Loss: 68.50

Gold

“Gold Prices Surge Beyond $2,000 Amid Dovish Fed: Dollar Weakens, Yields Sink, and Safe-Haven Appeal Rises”

Gold prices inched higher in Asian trade, extending gains above key levels following dovish signals from the Federal Reserve, causing significant declines in the dollar and Treasury yields. The precious metal rebounded from recent losses after the Fed signaled a halt to interest rate hikes and the possibility of rate cuts in 2024. The dollar slid to four-month lows, and the 10-year Treasury yield fell below 4%, benefiting gold’s appeal. Lower interest rates raised gold’s attractiveness, reducing the opportunity cost of holding the non-yielding asset. Spot gold stabilized at $2,036.83 per ounce, with February gold futures rising 0.3% to $2,050.95 per ounce. While gold stands to gain from lower rates, economic resilience could delay Fed rate cuts, and improved risk appetite might draw capital away from gold.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2019.86 | Positive Crossover | Bullish
  • MA 20 : 2011.61 | Positive Crossover | Bullish
  • MA 50 : 1984.36 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2016.94 | Positive Crossover | Bullish
  • MA 20 : 2016.76 | Positive Crossover | Bullish
  • MA 50 : 1979.01 | Positive Crossover | Bullish

RSI (Relative Strength Index): 59.00 | Neutral Zone | Neutral

Stochastic   Oscillator : 35.15 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2052.82 R2 : 2082.09
  • S1 : 1958.07 S2 : 1928.79

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 2031 | Take Profit: 2072 | Stop Loss: 2023

NATURAL GAS

“Natural Gas Futures Surge as Commodities Rally Gains Momentum”

Natural gas futures saw an uptick in settlement, driven more by a widespread commodities rally post-Federal Reserve activity than any significant change in weather patterns. Gas for January delivery settled up 2.4% at $2.392/mmBtu, slightly below its intraday peak of $2.405. Weather forecasts continue to predict milder-than-usual temperatures for the majority of December. The Energy Information Administration (EIA) reported a 55 billion cubic-foot withdrawal from underground storage for the week ending December 8, bringing total supplies to 3,664 Bcf—7.6% above their five-year average for this time of year. Analysts, in a Wall Street Journal survey, had anticipated a 50 Bcf draw. Projections indicate smaller-than-normal draws in the coming weeks due to the mild weather, limiting demand for heating.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2.36 | Negative Crossover | Bearish
  • MA 20 : 2.49 | Negative Crossover | Bearish
  • MA 50 : 2.67 | Negative Crossover | Bearish

Simple :

  • MA 10 : 2.36 | Negative Crossover | Bearish
  • MA 20 : 2.51 | Negative Crossover | Bearish
  • MA 50 : 2.83 | Negative Crossover | Bearish

RSI (Relative Strength Index): 31.48 | Neutral Zone | Neutral

Stochastic   Oscillator : 22.26 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 3.09 R2 : 3.27
  • S1 : 2.52 S2 : 2.34

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Buy: 2.3990 | Take Profit: 2.1348 | Stop Loss: 2.4566

CORN

Corn Prices Retreat, Closing with Fractional Mixed Movements

Corn prices experienced a retreat, concluding with fractionally mixed movements. The market saw a varied performance in closing prices, indicating a nuanced and potentially indecisive stance among traders and investors. Factors influencing this mixed outcome could range from supply and demand dynamics, global economic conditions, weather patterns, and other variables that impact the corn market. The term “fractionally mixed” suggests that while there may not be a clear trend in the overall direction, there are subtle changes or fluctuations in different aspects of corn pricing. This type of market behavior often prompts market participants to closely monitor developments for potential signals or shifts in sentiment.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.75 | Negative Crossover | Bearish
  • MA 20 : 4.76 | Negative Crossover | Bearish
  • MA 50 : 4.86 | Negative Crossover | Bearish

Simple :

  • MA 10 : 4.76 | Negative Crossover | Bearish
  • MA 20 : 4.75 | Negative Crossover | Bearish
  • MA 50 : 4.87 | Negative Crossover | Bearish

RSI (Relative Strength Index): 44.40 | Neutral Zone | Neutral

Stochastic   Oscillator : 45.83 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 490 R2 : 512
  • S1 : 470 S2 : 440

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Buy: 470 | Take Profit: 440 | Stop Loss: 480

Elsewhere In The Commodity Market

Gold was up (0.37%) at 1988.40, Silver up (0.99%) at 23.95, Palladium up (0.32%) at 1041.50, Platinum up (0.62%) at 893.50, Brent Crude Oil up (0.79%) at 78.04, WTI Crude Oil up (0.85%) at 73.50 as of writing time.

Key Economic Events & Data Release Today:

7:00PM(IST)-USD-Empire State Manufacturing Index 8:30PM(IST)-USD-Flash Services PMI