. Daily Commodity Analysis - Gold Prices Subdued, Silver Up Daily.

Daily Commodity Analysis – Gold Prices Subdued, Silver Up Daily.

Daily Commodity Analysis – Gold Prices Subdued, Silver Up Daily.

08 May 2024

Introduction

Gold prices remained subdued amidst uncertainty surrounding interest rates, despite a slight uptick in Asian trading. Recent remarks from Federal Reserve officials cast doubt on expectations for rate cuts, dampening safe haven demand. Although geopolitical tensions, notably the Israel-Hamas conflict, provided some support, concerns over high U.S. interest rates and a strengthening dollar offset gains. Traders are closely monitoring Fed speeches and the University of Michigan’s consumer sentiment reading for further market direction. Meanwhile, silver maintained its upward trend, buoyed by geopolitical unrest and speculations of Fed rate cuts, while oil prices dipped on rising U.S. stockpiles and cautious supply expectations ahead of an OPEC+ meeting. Natural gas futures, however, saw stability amid increased LNG exports and reduced drilling, with market dynamics influenced by OPEC+ decisions and U.S. stock data.

Markets In Focus Today – GOLD

Gold prices muted amid uncertainty over interest rates.

Gold prices rose marginally in Asian trade on Wednesday, seeing little support from safe haven demand as recent comments from Federal Reserve officials saw markets second-guess expectations for interest rate cuts. The yellow metal saw some safe haven demand this week as a conflict between Israel and Hamas worsened and ceasefire talks yielded little progress. But safe haven buying was offset by pressure from renewed fears of high U.S. interest rates, as well as a rebound in the dollar.Prices of the yellow metal saw little support from a recent decline in the dollar, as the greenback rebounded on Tuesday after several Fed officials said the central bank was more likely to keep rates unchanged in 2024. The Fed’s (Fed) Philip Jefferson, Susan Collins, and Lisa Cook are scheduled to speak later on Wednesday. Gold traders will monitor the consumer sentiment reading from the University of Michigan on Friday.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2316.7820 | Negative Crossover | Bearish
  • MA 20 : 2314.1018 | Negative Crossover | Bearish
  • MA 50 : 2256.3275 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2316.0836 | Negative Crossover | Bearish
  • MA 20 : 2336.6823 | Negative Crossover | Bearish
  • MA 50 : 2255.0344 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 44.45 | Neutral Zone | Neutral

Stochastic   Oscillator : 71.9 | Buy Zone | Negative

Resistance   And Support Levels :

  • R1 : 2392.8718 R2 : 2440.8082
  • S1 : 2237.6882 S2 : 2189.7518

Overall Sentiment : Neutral Market Direction : Sell

Trade Suggestion : Limit Sell : 2321.45 | Take Profit : 2308.04 | Stop Loss : 2329.04

SILVER

XAG/USD Climbs to $27.34, Uptrend Expected to Continue.

The price of Silver (XAG/USD) sustained its upward trend, holding around the $27.34 level, peaking briefly at $27.40. This rise is likely influenced by the ongoing geopolitical strife and market uncertainty, enhancing its appeal as a safe-haven asset. The recent U.S. job reports, weaker than anticipated, fueled speculations about potential Federal Reserve rate cuts later in the year, contributing to the U.S. dollar’s decline and bolstering silver’s value. Additionally, escalating conflicts in Gaza, underscored by ongoing Israeli military actions despite ceasefire negotiations, have heightened the demand for stable investments like silver, possibly pushing its prices higher. Despite April’s weaker-than-expected employment data hinting at potential rate cuts, recent hawkish statements from Federal Reserve officials could undermine these expectations and negatively affect silver prices.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 27.13 | Positive Crossover | Bullish
  • MA 20 : 26.98 | Positive Crossover | Bullish
  • MA 50 : 27.10 | Negative Crossover | Bearish

Simple :

  • MA 10 : 27.10 | Positive Crossover | Bullish
  • MA 20 : 26.78 | Positive Crossover | Bullish
  • MA 50 : 27.30 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 53.06 | Buy Zone | Bullish

Stochastic   Oscillator : 85.81 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 27.42 R2 : 28.29
  • S1 : 26.93 S2 : 26.01

Overall Sentiment : Neutral Market Direction : Buy

Trade Suggestion : Limit Buy : 27.16 | Take Profit : 27.38 | Stop Loss : 27.03

CRUDE OIL

Oil dips on rising US stockpiles, cautious supply expectations.

Oil prices fell in Asian trade on Wednesday as industry data showed a pile-up in crude and fuel inventories in the U.S., a sign of weak demand, and cautious supply expectations emerged ahead of an OPEC+ policy meeting next month.Both benchmarks fell marginally in the previous session on signs of easing supply tightness and weaker global oil demand from an EIA forecast report on Tuesday. Strength in the dollar also pressured oil prices, as Federal Reserve officials downplayed expectations of lower interest rates this year.The API data usually heralds a similar reading from official inventory data, which is due later on Wednesday.Strong U.S. supplies have undermined expectations of tighter global oil markets, especially as recent data also showed U.S. oil production raced back to record highs in February.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 79.6726 | Negative Crossover | Bearish
  • MA 20 : 81.0477 | Negative Crossover | Bearish
  • MA 50 : 81.0952 | Negative Crossover | Bearish

Simple :

  • MA 10 : 80.1968 | Negative Crossover | Bearish
  • MA 20 : 82.0365 | Negative Crossover | Bearish
  • MA 50 : 81.8353 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 31.3917 | Sell Zone | Bearish

Stochastic   Oscillator : 7.2779 | Sell Zone | Positive

Resistance   And Support Levels :

  • R1 : 85.9330 R2 : 87.5706
  • S1 : 80.6316 S2 : 78.9940

Overall Sentiment : Bearish Market Direction : Sell

Trade Suggestion : Limit Sell : 78.02 | Take Profit : 76.88 | Stop Loss : 78.52

NATURAL GAS

Natural Gas Demand Surge, Supply Cuts Tighten Supply.

U.S. natural gas futures stable, potential growth ahead.Increased LNG exports, reduced drilling boost prices.Pipeline maintenance may decrease West Texas gas supply.OPEC+ decisions and U.S. stock data continue to influence oil and gas market dynamics.Natural gas continues its attempts to settle above the $2.20 level. Natural gas gains some ground as traders stay focused on forecasts, which indicate that weather may shift from warmer to near-normal conditions. The outlook appears favorable for growth as short-term and intermediate trend lines show upward movement. This optimistic market condition might attract new investments from commodity trading advisors and major technical traders.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.9278 | Positive Crossover | Bullish
  • MA 20 : 1.8550 | Positive Crossover | Bullish
  • MA 50 : 1.8495 | Positive Crossover | Bullish

Simple :

  • MA 10 : 1.8864 | Positive Crossover | Bullish
  • MA 20 : 1.8080 | Positive Crossover | Bullish
  • MA 50 : 1.7658 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 66.7840 | Buy Zone | Bullish

Stochastic   Oscillator : 92.5549 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 1.8667 R2 : 1.9349
  • S1 : 1.6459 S2 : 1.5777

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 2.16 | Take Profit : 2.32 | Stop Loss : 2.07

Elsewhere In The Commodity Market

Gold down (0.06%) at 2312.72, Silver down (0.18%) at 27.12, Palladium down (0.77%) at 967.50, Platinum down (0.69%) at 968.78, Brent Crude Oil down (0.75%) at 82.31, WTI Crude Oil down (1.03%) at 77.50 as of writing time.

Key Economic Events & Data Release Today:

(EUR) German Industrial Production (MoM) (Mar) Forecast –0.6%, Previous 2.1% at 11:30. (USD) Crude Oil Inventories Forecast 1.430M, Previous 7.265M at 20:00.