. Daily Commodity Analysis - Gold rises, copper struggles, oil soars post-strikes, natural gas surges.

Daily Commodity Analysis – Gold rises, copper struggles, oil soars post-strikes, natural gas surges.

Daily Commodity Analysis – Gold rises, copper struggles, oil soars post-strikes, natural gas surges.

12 Jan 2024

Introduction

In the global commodities landscape, gold prices benefit from rising Middle East tensions and seek direction from the US Producer Price Index (PPI). Despite stronger-than-expected US inflation data, gold gains ground amid safe-haven demand. Meanwhile, copper prices, affected by concerns over China’s economic slowdown, stabilize. Oil prices surge 2% following US and Britain strikes on Houthi targets, heightening concerns about Middle East oil supplies. Natural gas futures rise as a substantial storage withdrawal outweighs surplus concerns. Market attention turns to Chinese GDP data next week, anticipating further impact on various commodities.

Markets In Focus Today – GOLD

Gold price benefits from Middle East tensions and look to US PPI for fresh impetus.

Gold price (XAU/USD) builds on the previous day’s recovery from a one-month low, around the $2,013 region, representing the 50-day Simple Moving Average (SMA), and gains positive traction for the second successive day on Friday. Gold prices rose on Friday as an escalation in the Middle East crisis ramped up safe-haven demand, which also helped the yellow metal gain despite stronger-than-expected U.S. inflation data. While gold prices saw some strength on Friday, they were still set to end the week marginally lower, amid uncertainty over the path of U.S. interest rates.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2037.78 | Positive Crossover | Bullish
  • MA 20 : 2037.97 | Positive Crossover | Bullish
  • MA 50 : 2017.34 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2040.00 | Negative Crossover | Bearish
  • MA 20 : 2046.12 | Negative Crossover | Bearish
  • MA 50 : 2017.22 | Positive Crossover | Bullish

RSI (Relative Strength Index): 51.53 | Buy Zone | Bullish

Stochastic   Oscillator : 93.14 | Buy Zone | Positive

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: 2036.36 | Take Profit: 2060.34 | Stop Loss: 2024.75

COPPER

Copper prices are steady, but China’s imports have weakened.

Among industrial metals, copper prices saw some strength on Friday, but were nursing losses for the week amid concerns over top importer China. Chinese economic data offered somewhat mixed cues to markets. CPI inflation rose slightly while exports grew more than expected in December, presenting some green shoots in the world’s largest copper importer. Concerns over a slowdown in copper demand, particularly as the Chinese economy weakens, were a key weight on copper prices in recent weeks. Focus now turns to fourth-quarter Chinese gross domestic product data, due next week.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 3.795 | Positive Crossover | Bullish
  • MA 20 : 3.800 | Positive Crossover | Bullish
  • MA 50 : 3.855 | Negative Crossover | Bearish

Simple :

  • MA 10 : 3.797 | Positive Crossover | Bullish
  • MA 20 : 3.800 | Positive Crossover | Bullish
  • MA 50 : 3.855 | Negative Crossover | Bearish

RSI (Relative Strength Index): 47.49 | Buy Zone | Bullish

Stochastic   Oscillator : 84.72 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 3.809 R2 : 3.884
  • S1 : 3.747 S2 : 3.700

Overall Sentiment: Neutral Market Direction: Buy

Trade Suggestion: Limit Buy: 3.801 | Take Profit: 3.882 | Stop Loss: 3.751

BRENT CRUDE OIL

Oil prices rise 2% after US, Britain strikes Houthi targets.

Oil prices rose 2% on Friday as the United States and Britain carried out air and sea strikes on Houthi military targets in Yemen in response to attacks by the Iran-backed group on shipping in the Red Sea. The attack added to market concerns about the potential impact a broader conflict in the Middle East would have on oil supplies from the region, especially those moving through the critical Straits of Hormuz. The benchmarks rose nearly 1% on Thursday, pointing to a second straight weekly rise.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 77.90 | Positive Crossover | Bullish
  • MA 20 : 78.01 | Positive Crossover | Bullish
  • MA 50 : 79.77 | Negative Crossover | Bearish

Simple :

  • MA 10 : 77.56 | Positive Crossover | Bullish
  • MA 20 : 78.08 | Positive Crossover | Bullish
  • MA 50 : 79.22 | Negative Crossover | Bearish

RSI (Relative Strength Index): 52.26 | Buy Zone | Bullish

Stochastic   Oscillator : 95.64 | Buy Zone | Positive

Resistance   And Support Levels :

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

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 78.60 | Take Profit: 81.40 | Stop Loss: 77.12

NATURAL GAS

Natural Gas Futures Rise on Big Storage Withdrawal.

Natural gas futures settle higher in another volatile session, supported by a larger-than-expected draw on inventories in the week through Jan. 5. The EIA reports withdrawals of 140 billion cubic feet last week, versus expectations of a 117-Bcf draw. Stocks were 436 Bcf above their year-earlier level, down from a 553 Bcf surplus the previous week, and were 348 Bcf above the five-year average, compared with 399 Bcf at the end of December. Colder weather in the coming days may cut further into the big surplus to last year, but it may take a prolonged Arctic freeze to eliminate the surplus.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2.84 | Positive Crossover | Bullish
  • MA 20 : 2.71 | Positive Crossover | Bullish
  • MA 50 : 2.68 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2.82 | Positive Crossover | Bullish
  • MA 20 : 2.60 | Positive Crossover | Bullish
  • MA 50 : 2.67 | Positive Crossover | Bullish

RSI (Relative Strength Index): 64.64 | Buy Zone | Bullish

Stochastic   Oscillator : 62.35 | Buy Zone | Positive

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: 3.044 | Take Profit: 3.313 | Stop Loss: 2.884

Elsewhere In The Commodity Market

Gold is up (0.53%) at 2039.02, Silver is up (0.89%) at 22.94, Palladium is up (1.31%) at 998.57, Platinum is up (1.03%) at 927.44, Brent Crude Oil is up (1.93%) at 78.21, WTI Crude Oil up (2.14%) at 73.55 as of writing time.

Key Economic Events & Data Release Today:

(GBP) Manufacturing Production (MoM) (Nov) Actual 0.4%, Forecast 0.3%, Previous –1.1% at 02:00. (GDP) GDP (MoM) (Nov) Actual 0.2%, Forecast 0.2%, Previous 0.3% at 02:00. (GBP) GDP (YoY (Nov) Actual 0.2%, Forecast 0.2%, Previous 0.3% at 02:00. (GBP) Industrial Production (MoM) (Nov) Actual 0.3%, Forecast 0.3%, Previous –0.8% at 02:00.