. Daily Commodity Analysis - Gold hits $2,055 amid tension, Silver resists, oil surges.

Daily Commodity Analysis – Gold hits $2,055 amid tension, Silver resists, oil surges.

Daily Commodity Analysis – Gold hits $2,055 amid tension, Silver resists, oil surges.

15 Jan 2024

Introduction 

Gold climbs to nearly $2,055 amid declining US yields, driven by geopolitical tensions in the Middle East, marking a three-day advance. Investors navigate market uncertainties while awaiting China’s crucial GDP data. Meanwhile, Silver’s rally faces resistance at 50 and 200DMAs, prompting a slight pullback. Oil prices edge up on Middle East conflict concerns, following US and British strikes against Houthi militia in Yemen. Natural Gas futures rise as traders eye frigid forecasts, anticipating increased volatility amid supply concerns and weather-induced demand. 

Markets In Focus Today – GOLD

Gold advances to near $2,055 as US yields decline.  

Gold prices continue to advance for the third consecutive day on Monday, trading higher and reaching around $2,055 per troy ounce. The upward movement in the price of the yellow metal is attributed to the risk-averse due to the geopolitical tensions in the Middle East. Gold price is capitalizing on persisting uncertainty in the market, as investors digest a bunch of the latest fundamental developments at the start of the week on Monday. Markets, however, prefer to stay on a cautious footing ahead of the crucial Gross Domestic Product (GDP) from China, especially after the People’s Bank of China (PBOC) surprised markets with no reduction to the Medium-Term Lending Facility (MLF) rat 

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2042.82 | Positive Crossover | Bullish 
  • MA 20 : 2040.68 | Positive Crossover | Bullish 
  • MA 50 : 2019.29 | Positive Crossover | Bullish 
  • Simple :
  • MA 10 : 2040.48 | Positive Crossover | Bullish 
  • MA 20 : 2048.15 | Positive Crossover | Bullish 
  • MA 50 : 2019.02 | Positive Crossover | Bullish 

RSI (Relative Strength Index): 57.74 | Buy Zone | Bullish 

Stochastic   Oscillator : 41.81 | Neutral Zone | Neutral 

Resistance   And Support Levels :  

  • R1 : 2127.21 R2 : 2168.19 
  • S1 : 1994.53 S2 : 1953.55 

Overall Sentiment: Bullish Market Direction: Buy  

Trade Suggestion: Limit Buy : 2053.89 | Take Profit: 2078.96 | Stop Loss: 2039.45 

SILVER

XAG/USD edges up but falters shy of 200-DMA.  

Silver’s recent rally to $23.52 was curbed by resistance at 50 and 200-DMAs, leading to a slight pullback in prices. Technical analysis shows Silver trading in a sideways trend; immediate support at $23.00, followed by $22.48. Silver price trims its losses, but it remains below the 100-day moving average (DMA) after hitting a new five-day high of $23.52 on Friday. Geopolitical tensions bolstered the grey metal, which aimed towards the confluence of the 50 and 200-DMAs, but buyers’ failure to crack that area opened the door for a pullback. 

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 23.18 | Positive Crossover | Bullish 
  • MA 20 : 23.04 | Positive Crossover | Bullish 
  • MA 50 : 23.51 | Negative Crossover | Bearish 

Simple :

  • MA 10 : 23.23 | Positive Crossover | Bullish 
  • MA 20 : 23.04 | Positive Crossover | Bullish 
  • MA 50 : 23.51 | Negative Crossover | Bearish 

RSI (Relative Strength Index): 52.91 | Buy Zone | Bullish 

Stochastic   Oscillator : 89.43 | Buy Zone | Neutral 

Resistance   And Support Levels :  

  • R1 : 23.31 R2 : 24.02 
  • S1 : 22.74 S2 : 22.14 

Overall Sentiment: Bullish Market Direction: Buy  

Trade Suggestion: Limit Buy: 23.18 | Take Profit: 23.89 | Stop Loss: 22.74 

BRENT CRUDE OIL

Oil nudges up as investors eye Mideast conflict.  

Oil prices edged up on Monday as traders watched for supply disruption risks in the Middle East following strikes by U.S. and British forces to stop Houthi militia in Yemen from attacking ships in the Red Sea. The benchmarks jumped more than 2% last week to touch their highest intraday levels this year after U.S. and British forces launched dozens of air strikes against Houthi forces in retaliation for months of attacks on Red Sea shipping that the Iran-backed fighters cast as a response to the war in Gaza. On Sunday, the Houthi militia threatened a “strong and effective response” after the United States carried out another strike overnight, ratcheting up tension. 

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 77.81 | Positive Crossover | Bullish 
  • MA 20 : 77.95 | Positive Crossover | Bullish 
  • MA 50 : 79.68 | Negative Crossover | Bearish 
  • Simple :
  • MA 10 : 77.59 | Positive Crossover | Bullish 
  • MA 20 : 78.12 | Negative Crossover | Bearish 
  • MA 50 : 79.04 | Negative Crossover | Bearish 

RSI (Relative Strength Index): 49.10 | Buy Zone | Bullish 

Stochastic   Oscillator : 49.26 | Buy Zone | Negative 

Resistance   And Support Levels :  

  • R1 : 80.60 R2 : 82.82 
  • S1 : 73.40 S2 : 71.18 

Overall Sentiment: Bearish Market Direction: Sell  

Trade Suggestion: Stop Sell: 77.48 | Take Profit: 74.80 | Stop Loss: 79.61 

NATURAL GAS

Natural gas Futures Rise as Speculators Eye Frigid Forecast.  

Natural Gas futures rise as traders track weather models, expecting market turbulence amid bullish short-term prospects. Natural Gas futures experience upward momentum driven by weather forecasts. Traders anticipate heightened market volatility due to contrasting weather models. Short-term bullish trend in natural gas futures amid supply concerns and weather-induced demand. Natural gas futures are edging higher, continuing the upward momentum from Thursday. This increase is being closely monitored by traders, especially in light of the impending weekend and its potential weather developments. 

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2.85 | Positive Crossover | Bullish 
  • MA 20 : 2.73 | Positive Crossover | Bullish 
  • MA 50 : 2.69 | Positive Crossover | Bullish 
  • Simple :
  • MA 10 : 2.87 | Positive Crossover | Bullish 
  • MA 20 : 2.63 | Positive Crossover | Bullish 
  • MA 50 : 2.66 | Positive Crossover | Bullish 

RSI (Relative Strength Index): 58.95 | Buy Zone | Bullish 

Stochastic   Oscillator : 61.22 | Buy Zone | Neutral 

Resistance   And Support Levels :  

  • R1 : 2.60 R2 : 2.71 
  • S1 : 2.22 S2 : 2.11 

Overall Sentiment: Bullish Market Direction: Buy  

Trade Suggestion: Limit Buy: 3.073 | Take Profit: 3.327 | Stop Loss: 2.930 

Elsewhere In The Commodity Market

Gold is up (0.36%) at 2056.47, Silver is up (0.31%) at 23.25, Palladium is up (1.07%) at 984.57, Platinum is up (1.03%) at 918.25, Brent Crude is down (0.15%) at 78.18, WTI Crude Oil down (0.26%) at 72.59 as of writing time. 

Key Economic Events & Data Release Today:

(EUR) Industrial Production (MoM) (Nov) Forecast -0.3%, Previous –0.7% at 15:30. (CAD) Manufacturing Sales (MoM) Forecast 1.0%, Previous –2.8% at 19:00. (CAD) Wholesale Sales (MoM) (Nov) Forecast 0.8%, Previous –0.5% at 19:00.