. Daily Commodity Analysis - Gold, copper soar amid market turmoil.

Daily Commodity Analysis – Gold, copper soar amid market turmoil.

Daily Commodity Analysis – Gold, copper soar amid market turmoil.

18 Apr 2024

Introduction

The XAU/USD pair rebounds as market caution takes precedence, targeting $2,400. Gold sees appreciation amidst trader wariness over escalating Middle East tensions, highlighted by Jordan’s Foreign Minister . The correction in the US Dollar bolsters gold demand, with the precious metal reclaiming losses, currently trading around $2,370. Concurrently, industrial metals like copper surge on dollar weakness and expectations of U.S. economic resilience. Oil stabilizes post-drop amid demand worries and eased Middle East tension, while corn futures face pressure from wheat, influenced by ethanol production and export sales data.

Markets In Focus Today – GOLD

XAU/USD rebounds on market caution, aims to reach $2,400.

Gold price appreciates as traders exercise caution amid concerns about escalating tensions in the Middle East.Jordan’s Foreign Minister warned that Israeli retaliation against Iranian strikes could potentially escalate the conflict throughout the entire region.The correction in the US Dollar supports the demand for the yellow metal.Gold price recovers its recent losses, trading around $2,370 per troy ounce during the Asian session on Thursday. The safe-haven yellow metal gains ground as traders exercise caution amidst heightened geopolitical tensions in the Middle East. Meanwhile, the US Dollar Index (DXY) loses ground, primarily influenced by subdued US Treasury yields. This correction in the US Dollar is to make Gold less expensive to buy for investors using other currencies.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2348.4665 | Positive Crossover | Bullish
  • MA 20 : 2302.8437 | Positive Crossover | Bullish
  • MA 50 : 2208.2245 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2357.3168 | Positive Crossover | Bullish
  • MA 20 : 2293.3008 | Positive Crossover | Bullish
  • MA 50 : 2170.1178 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 71.1731 | Buy Zone | Bullish

Stochastic   Oscillator : 72.7973 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 2244.9097 R2 : 2291.4069
  • S1 : 2094.3849 S2 : 2047.8877

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion: Stop Buy: 2381.76 | Take Profit : 2397.77 | Stop Loss : 2372.39

COPPER

Copper advance on dollar weakness .

Industrial metal prices rose back towards recent peaks on Thursday, benefiting from a softer dollar and bets that U.S. economic resilience will help underpin metal demand. Three-month copper futures on the London Metal Exchange rose 0.4% to $9,591 a ton- coming close to a two-year high, while one-month copper futures rose 0.5% to $4.3623 a pound- also remaining close to a two-year high. Industrial metal prices surged in recent weeks on expectations of tighter supplies, after the U.S. and its allies imposed stricter sanctions on Russian metal exports. Copper prices were also boosted by several major Chinese smelters signaling they will reduce production.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.34 | Positive Crossover | Bullish
  • MA 20 : 4.31 | Positive Crossover | Bullish
  • MA 50 : 4.22 | Positive Crossover | Bullish

Simple :

  • MA 10 : 4.34 | Positive Crossover | Bullish
  • MA 20 : 4.31 | Positive Crossover | Bullish
  • MA 50 : 4.21 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 67.51 | Buy Zone | Bullish

Stochastic   Oscillator : 62.08 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 4.42 R2 : 4.54
  • S1 : 4.31 S2 : 4.19

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion : Limit Buy : 4.29 | Take Profit : 4.42 | Stop Loss : 4.21

BRENT CRUDE OIL

Oil stabilizes after sharp drop on demand concerns, easing of Middle East tension.

Oil prices were little changed after a 3% drop in the previous session as the market remains concerned about demand this year and on signs that a wider conflict in the key Middle East producing region could be avoided. The two benchmarks slid 3% in the previous session on signs that fuel demand this year is lower than expected amid flagging economic growth in China and as oil inventories in the U.S., the world’s biggest crude consumer, rose. Surging U.S. crude inventories also kept a lid on prices. Oil inventories rose by 2.7 million barrels to 460 million barrels in the week ending April 12, the Energy Information Administration said, nearly double analysts’ expectations in a Reuters poll for a 1.4 million-barrel build.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 88.9568 | Negative Crossover | Bearish
  • MA 20 : 88.3179 | Negative Crossover | Bearish
  • MA 50 : 85.9291 | Positive Crossover | Bullish

Simple :

  • MA 10 : 89.6744 | Negative Crossover | Bearish
  • MA 20 : 88.5557 | Negative Crossover | Bearish
  • MA 50 : 85.3429 | Positive Crossover | Bullish

RSI (Relative Strength Index): 48.3436 | Buy Zone | Bullish

Stochastic   Oscillator : 38.3039 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 87.7408 R2 : 89.3012
  • S1 : 82.6892 S2 : 81.1288

Overall Sentiment : Neutral Market Direction : Sell

Trade Suggestion : Limit Sell : 88.16 | Take Profit : 86.24 | Stop Loss : 89.62

CORN

Corn Back to Lower at Midday.

Corn futures are felling some spillover pressure from wheat, as contracts are down ½ to 2 cents at midday. New crop December is 1 ½ cents lower. EIA data from this morning showed a sharp 73,000 barrel per day drop to ethanol production in the week that ended on April 12. That left production at a 12-week low at 983,000 bpd. Stocks did see some draw, down 128,000 barrels to 26.08 million barrels. Export Sales data will be updated on Thursday, with the trade expecting to see anywhere from 300,000 MT to 900,000 MT of old crop corn sold in the week of 4/11. New crop bookings are seen at 0-100,000 MT. A couple private purchases by South Korean feed importers were noted overnight, totaling 138,000 MT with the US or South American a likely origin.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.2617 | Negative Crossover | Bearish
  • MA 20 : 4.2642 | Negative Crossover | Bearish
  • MA 50 : 4.2969 | Negative Crossover | Bearish

Simple :

  • MA 10 : 4.2661 | Negative Crossover | Bearish
  • MA 20 : 4.2704 | Negative Crossover | Bearish
  • MA 50 : 4.2375 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 47.2868 | Neutral Zone | Neutral

Stochastic   Oscillator : 35.3521 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 4.3971 R2 : 4.4669
  • S1 : 4.1709 S2 : 4.1011

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion : Limit Sell : 442.98 | Take Profit : 431.83 | Stop Loss : 453.02

Elsewhere In The Commodity Market

Gold up (0.82%) at 2379.22, Silver up (1.07%) at 28.51, Palladium up (1.2%) at 1039.35, Platinum up (0.49%) at 942.62, Brent Crude Oil up (0.5%) at 87.39, WTI Crude Oil down (0.09%) at 82.20 as of writing time.

Key Economic Events & Data Release Today:

(AUD) Employment Change (Mar) Forecast –7.2K, Previous –116.5K at 07:00. (EUR) EU Leaders Summit at 15:30 (USD) Initial Jobless Claims Forecast 215K, Previous 211K at 18:00 (USD) Existing Home Sales (Mar) Forecast 4.20M, Previous 4.38M at 19:30.