. Daily Commodity Analysis -gold rises, corn fluctuates.

Daily Commodity Analysis -gold rises, corn fluctuates.

Daily Commodity Analysis -gold rises, corn fluctuates.

26 Mar 2024

Introduction

Gold price gains momentum as the USD weakens on expectations of Fed rate cuts. While gold struggles to make significant gains, the downside appears supported. The Fed’s projected rate cuts for 2024 weigh on the USD, providing a boost. Attention turns to Tuesday’s US macro data ahead of Friday’s US PCE Price Index. Meanwhile, silver faces selling pressure, awaiting a break below key Fibonacci levels. Oil sees little change amid mixed views on Russian supply disruptions and a slightly weaker dollar. Corn futures settle lower amidst ample grain supplies and anticipation of USDA reports later in the week.

Markets In Focus Today – GOLD

Gold price gains positive traction as USD continues losing ground on Fed rate cut bets.

Gold price struggles to gain any meaningful traction, though the downside seems cushioned. The Fed projected three rate cuts in 2024 to continue to undermine the USD and lend support. Tuesday’s US macro data to provide some impetus ahead of the US PCE Price Index on Friday. Gold price (XAU/USD) attracts some buyers for the second straight day on Tuesday and builds on its steady ascent through the first half of the European session. Growing acceptance that the Federal Reserve (Fed) will begin its rate-cutting cycle in June keeps the US Treasury bond yields depressed and drags the US Dollar (USD) away from a multi-week high touched last Friday. This, along with persistent geopolitical risks stemming from the protracted Russia-Ukraine war and conflicts in the Middle East, turn out to be key factors benefiting the safe-haven precious metal.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2166.1402 | Positive Crossover | Bullish
  • MA 20 : 2142.6850 | Positive Crossover | Bullish
  • MA 50 : 2094.4529 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2169.1727 | Positive Crossover | Bullish
  • MA 20 : 2146.0494 | Positive Crossover | Bullish
  • MA 50 : 2072.9536 | Positive Crossover | Bullish

RSI (Relative Strength Index): 67.2317 | Neutral Zone | Neutral

Stochastic   Oscillator : 47.1799 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2062.3465 R2 : 2081.5168
  • S1 : 2000.2868 S2 : 1981.1165

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 2181.03 | Take Profit: 2207.63 | Stop Loss: 2166.07

SILVER

XAG/USD bears need to wait for a break below 38.2% Fibo. near $24.30.

Silver meets with a fresh supply on Tuesday and drops closer to last week’s swing low. The setup suggests that the path of least resistance for the XAU/USD is to the downside. A sustained break below the 38.2% Fibo. will reinforce the near-term negative outlook. Silver (XAG/USD) comes under some selling pressure on Tuesday and remains depressed near mid-$24.00s through the first half of the European session. Meanwhile, the technical setup seems tilted in favor of bearish traders and supports prospects for an extension of last week’s sharp retracement slide from the $25.75-$25.80 region, or its highest level since early December.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 24.73 | Positive Crossover | Bullish
  • MA 20 : 24.78 | Positive Crossover | Bullish
  • MA 50 : 24.49 | Negative Crossover | Bearish

Simple :

  • MA 10 : 24.66 | Positive Crossover | Bullish
  • MA 20 : 24.90 | Positive Crossover | Bullish
  • MA 50 : 24.61 | Negative Crossover | Bearish

RSI (Relative Strength Index): 45.00 | Neutral Zone | Neutral

Stochastic   Oscillator : 10.44 | Sell Zone | Neutral

Resistance   And Support Levels :

  • R1 : 24.89 R2 : 25.76
  • S1 : 24.03 S2 : 23.04

Overall Sentiment: Neutral Market Direction: Sell

Trade Suggestion: Stop Sell: 24.53 | Take Profit: 23.56 | Stop Loss: 25.62

BRENT CRUDE OIL

Oil trades little changed as markets weigh Russian supply woes against a weaker dollar.

Oil was little changed on Tuesday, after rising in the previous session, as investors took a more mixed view toward the loss of Russian refinery capacity after recent Ukrainian attacks, though a slightly weaker U.S. dollar offered some support. Brent rose 1.5% in Monday’s session while WTI gained 1.6% higher after Russia’s government ordered companies to cut output in the second quarter to meet a 9 million barrels per day (bpd)target to comply with pledges to the OPEC+ consumer group. A weaker dollar typically makes it cheaper for oil purchases in other currencies which could bolster overall demand. Rising geopolitical premiums as the ongoing Israel-Gaza conflict supported prices, though an immediate impact on supplies in the Middle East region remains to be seen.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 85.6955 | Positive Crossover | Bullish
  • MA 20 : 84.6804 | Positive Crossover | Bullish
  • MA 50 : 82.9777 | Positive Crossover | Bullish

Simple :

  • MA 10 : 85.9094 | Positive Crossover | Bullish
  • MA 20 : 84.2612 | Positive Crossover | Bullish
  • MA 50 : 82.3991 | Positive Crossover | Bullish

RSI (Relative Strength Index): 63.7352 | Buy Zone | Bullish

Stochastic   Oscillator : 80.5505 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 83.8928 R2 : 85.7069
  • S1 : 78.0199 S2 : 76.2058

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 85.43 | Take Profit: 87.59 | Stop Loss: 84.04

CORN

Corn futures settle down after a choppy session.

Analysts said that corn futures settled lower on Monday, as support from rising wheat prices was offset by pressure from ample grain supplies and soft demand. The benchmark May corn contract (CK24) settled 1-1/2 cents lower at $4.37-3/4 a bushel. Traders are squaring positions ahead of the U.S. Department of Agriculture’s (USDA) quarterly stocks and prospective plantings reports due on Thursday. The USDA is expected to report a rise in March 1 U.S. corn stocks, compared with a year earlier. Its plantings report is expected to show U.S. farmers are planning to reduce corn plantings to 91.776 million acres from 94.641 million last year, according to a Reuters poll.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.2870 | Negative Crossover | Bearish
  • MA 20 : 4.2706 | Negative Crossover | Bearish
  • MA 50 : 4.3273 | Positive Crossover | Bullish

Simple :

  • MA 10 : 4.2920 | Negative Crossover | Bearish
  • MA 20 : 4.2550 | Negative Crossover | Bearish
  • MA 50 : 4.2864 | Positive Crossover | Bullish

RSI (Relative Strength Index): 52.1250 | Buy Zone | Bullish

Stochastic   Oscillator : 68.0981 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 4.3863 R2 : 4.5007
  • S1 : 4.0157 S2 : 3.9013

Overall Sentiment: Neutral Market Direction: Sell

Trade Suggestion: Limit Sell: 450.33 | Take Profit: 434.84 | Stop Loss: 462.38

Elsewhere In The Commodity Market

Gold is up (0.61%) at 2184.67, Silver is up (0.26%) at 24.72, Palladium is down (0.18%) at 1004.18, Platinum is up (0.5%) at 906.94, Brent Crude Oil is up (0.12%) at 86.23, WTI Crude Oil up (0.20%) at 82.11 as of writing time.

Key Economic Events & Data Release Today:

(CAD) Wholesale Sales (MoM) Previous 0.1% at 18:00. (USD) Durable Goods Orders (MoM) (Feb) Forecast 1.2%, Previous –6.1% at 18:00. (USD) CB Consumer Confidence (Mar) Forecast 106.9, Previous 106.7 at 19:30.