. Daily Commodity Analysis - Gold, Silver, Crude Oil, Wheat.

Daily Commodity Analysis – Gold, Silver, Crude Oil, Wheat.

Daily Commodity Analysis – Gold, Silver, Crude Oil, Wheat.

17 Jan 2024

Introduction

Gold prices continue to decline in Asian trade on Wednesday, driven by Federal Reserve officials’ hawkish signals, casting doubts on early interest rate cuts. Fed Governor Christopher Waller’s cautious stance led to a drop from $2,050, while a stronger dollar added further pressure. Silver (XAG/USD) faces a sharp sell-off, sliding to near $22.70. WTI crude oil consolidates around $72.10 as US production increases, and winter wheat futures drop 2.4% to $5.82 1/4 a bushel on favorable crop conditions. Investors await US Retail Sales and Industrial Production data for market direction.

Markets In Focus Today – GOLD

Gold prices fall on rate-cut doubts.

Gold prices extended losses in Asian trade on Wednesday as hawkish signals from Federal Reserve officials raised more doubts over early interest rate cuts by the central bank, while a rebound in the dollar also dented prices. Gold prices tumbled from the $2,050 an ounce level on Tuesday after Fed Governor Christopher Waller flagged a cautious approach to rate cuts and said that recent resilience in the U.S. economy will likely delay any potential reductions. Meanwhile, diminishing odds for a more aggressive policy easing by the Fed, along with a further escalation of geopolitical tensions in the Middle East and unimpressive economic growth figures from China, continue to weigh on investors’ sentiment.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2036.25 | Negative Crossover | Bearish
  • MA 20 : 2037.47 | Negative Crossover | Bearish
  • MA 50 : 2019.58 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2035.07 | Negative Crossover | Bearish
  • MA 20 : 2046.90 | Negative Crossover | Bearish
  • MA 50 : 2021.57 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 44.77 | Neutral Zone | Neutral

Stochastic   Oscillator : 28.11 | Sell Zone | Negative

Resistance   And Support Levels :

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

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Stop Sell: 2017.84 | Take Profit: 1986.42 | Stop Loss: 2040.15

SILVER

XAG/USD slides to near $22.70 as Fed speakers maintain a hawkish stance.

Silver price fell sharply to near $22.70 as Fed Waller denied early rate cut discussions. The USD Index has climbed to near 103.50 amid a risk-off mood. Silver price (XAG/USD) faces an intense sell-off as Federal Reserve (Fed) policymakers are maintaining the narrative of keeping interest rates higher for a longer period. The white metal has extended its downside to near $22.70 and is expected to remain on the tenterhooks ahead of the United States Retail Sales and Industrial Production data. Investors await the US Retail Sales and the Industrial Production data for further guidance.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 22.84 | Negative Crossover | Bearish
  • MA 20 : 22.99 | Negative Crossover | Bearish
  • MA 50 : 23.34 | Negative Crossover | Bearish

Simple :

  • MA 10 : 22.88 | Negative Crossover | Bearish
  • MA 20 : 22.99 | Negative Crossover | Bearish
  • MA 50 : 23.34 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 36.11 | Sell Zone | Bearish

Stochastic   Oscillator : 16.08 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 23.17 R2 : 23.66
  • S1 : 22.67 S2 : 21.95

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Stop Sell: 22.58 | Take Profit: 21.95 | Stop Loss: 23.02

CRUDE OIL

WTI consolidates near $72.10 after recent losses and US Crude oil output increases.

WTI price moves sideways with a negative bias as US oil facilities increase output.EIA revealed that the Permian Basin production rose by 5.5 thousand bpd to 5.9 million bpd.US Central Command has reported about targeting a Houthi missile facility in Yemen. West Texas Intermediate (WTI) price hovers around $72.10 per barrel during the Asian session on Wednesday. The price of the WTI Crude oil experienced downward pressure as United States (US) Crude oil production facilities slightly increased net output during the week. The Energy Information Administration (EIA) disclosed that production in the Permian Basin rose by 5.5 thousand barrels per day to 5.9 million barrels per day.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 72.04 | Negative Crossover | Bearish
  • MA 20 : 72.40 | Negative Crossover | Bearish
  • MA 50 : 74.47 | Negative Crossover | Bearish

Simple :

  • MA 10 : 72.15 | Negative Crossover | Bearish
  • MA 20 : 72.64 | Negative Crossover | Bearish
  • MA 50 : 73.69 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 43.68 | Neutral Zone | Neutral

Stochastic   Oscillator : 38.48 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 75.38 R2 : 77.52
  • S1 : 68.47 S2 : 66.33

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Stop Sell: 70.60 | Take Profit: 68.08 | Stop Loss: 72.28

WHEAT FUTURES

Wheat Futures Drop as Winter Crop Presses On.

Wheat for March delivery fell 2.4% to $5.82 1/4 a bushel, on the Chicago Board of Trade on Tuesday, with snowfall in growing areas insulating the winter wheat crop from fatally cold temperatures. The arctic vortex that brought subzero temperatures to the central U.S. growing areas looks to have caused only limited damage — with existing snow cover insulating wheat crops, agricultural research firm DTN said. Friday’s WASDE report showed higher-than-expected production and stocks for U.S. crops–particularly corn – which continued to pressure grains today.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 593.84 | Negative Crossover | Bearish
  • MA 20 : 611.78 | Negative Crossover | Bearish
  • MA 50 : 642.87 | Positive Crossover | Bullish

Simple :

  • MA 10 : 592.25 | Negative Crossover | Bearish
  • MA 20 : 611.78 | Negative Crossover | Bearish
  • MA 50 : 642.86 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 31.5 | Sell Zone | Bearish

Stochastic   Oscillator : 33.1 | Sell Zone | Positive

Resistance   And Support Levels :

  • R1 : 609.86 R2 : 641.45
  • S1 : 592.31 S2 : 571.25

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Stop Sell: 588.10 | Take Profit: 571.25 | Stop Loss: 600.73

Elsewhere In The Commodity Market

Gold is down (0.37%) at 2020.63, Silver is down (0.99%) at 22.67, Palladium is down (1.68%) at 920.27, Platinum is down (0.46%) at 920.27, Brent Crude is down (1.16%) at 77.38, WTI Crude Oil down (1.30%) at 71.59 as of writing time.

Key Economic Events & Data Release Today:

(CNY) Industrial Production (YoY) (Dec) Actual 6.8%, Forecast 6.6%, Previous 6.6% at 07:30. (CNY) GDP (YoY) (Q4) Actual 5.2%, Forecast 5.3%, Previous 4.9% at 07:30. (GBP) CPI (YoY) (Dec) Actual 4.0%, Forecast –3.8%, Previous 3.9% at 12:30. (EUR) Core CPI (YoY) (Dec) Forecast 2.9%, Previous 2.4% at 15:30. (USD) Retail Sales (MoM) (Dec) Forecast 0.4%, Previous 0.3% at 19:00. (USD) Core Retail Sales (MoM) (Dec) Forecast 0.2%, Previous 0.2% at 19:00. (EUR) ECB President Lagarde Speaks at 20:45.