. Daily Commodity Analysis - Gold slides near $2,300, Silver bullish.

Daily Commodity Analysis – Gold slides near $2,300, Silver bullish.

Daily Commodity Analysis – Gold slides near $2,300, Silver bullish.

02 May 2024

Introduction

Gold price continues its descent, nearing the $2,300 mark on Thursday, as fresh selling pressure emerges. Federal Reserve Chair Jerome Powell’s remarks on Wednesday, indicating persistent high inflation and uncertainty in reducing it, suggest prolonged higher rates. This boosts US Treasury bond yields, diminishing gold’s allure as a safe-haven asset. With a positive risk sentiment further driving flows away from gold, its downside may be limited ahead of the US Nonfarm Payrolls report. Meanwhile, silver’s bullish trend persists, while WTI crude oil drops to seven-week lows amid unexpected crude inventory build-ups. Traders also monitor US corn futures amidst concerns over delayed plantings due to rainy weather.

Markets In Focus Today – GOLD

Gold price extends its steady intraday descent, slides back closer to $2,300 mark.

Gold price (XAU/USD) meets with a fresh supply on Thursday and erodes a part of the previous day’s recovery gains from a nearly four-week low. The Federal Reserve (Fed) Chair Jerome Powell told reporters on Wednesday that inflation was too high and progress in bringing it down was uncertain. This suggested that the Fed will keep rates higher for longer, which pushes the US Treasury bond yields higher and turns out to be a key factor undermining the non-yielding yellow metal. Apart from this, a generally positive risk tone further contributes to driving flows away from the safe-haven Gold price. Meanwhile, Powell downplayed the risk of any further interest rate hikes, which fails to assist the US Dollar (USD) to attract any meaningful buyers and languish near a two-week low touched last Friday as . This, in turn, could lend some support to the XAU/USD and help limit the downside ahead of the closely-watched US Non farm Payrolls (NFP) report on Friday.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2322.0523 | Negative Crossover | Bearish
  • MA 20 : 2314.8799 | Negative Crossover | Bearish
  • MA 50 : 2246.5774 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2326.5310 | Negative Crossover | Bearish
  • MA 20 : 2341.8724 | Negative Crossover | Bearish
  • MA 50 : 2232.6421 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 50.5628 | Buy Zone | Bullish

Stochastic   Oscillator : 13.2073 | Sell 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 : 2306.88 | Take Profit : 2285.43 | Stop Loss : 2323.62

SILVER

XAG/USD’s uptrend remains intact, as bullish harami looms.

Silver’s price stayed firm at around $26.64 after the Fed decided to hold rates unchanged and Powell’s press conference. Fed Chair Jerome Powell said they would remain data-dependent, decide meeting by meeting, and won’t cut rates until they’re confident that inflation is trending towards its 2% goal.The grey metal dipped below the 61.8% Fibonacci retracement at $26.41, hitting a two-week low of $26.27 before resuming its uptrend. Although Silver reached a daily high of $26.96, buyers lacked the strength to break above the $27.00 figure, which paved the way to retreat to current price levels. Silver hints at bullish trend; breakout above $27.14 could reinforce this.Bearish shift requires silver below $26.13, targeting lower supports.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 26.36 | Negative Crossover | Bearish
  • MA 20 : 26.90 | Negative Crossover | Bearish
  • MA 50 : 27.16 | Negative Crossover | Bearish

Simple :

  • MA 10 : 26.61 | Negative Crossover | Bearish
  • MA 20 : 26.97 | Negative Crossover | Bearish
  • MA 50 : 27.67 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 35.23 | Sell Zone | Bearish

Stochastic   Oscillator : 40.65 | Neutral Zone | Positive

Resistance   And Support Levels :

  • R1 : 26.93 R2 : 28.66
  • S1 : 25.58 S2 : 24.21

Overall Sentiment : Neutral Market Direction : Sell

Trade Suggestion : Limit Sell : 26.74 | Take Profit : 25.45 | Stop Loss : 27.53

CRUDE OIL

WTI drops to seven-week lows below $80.00 on surprise build crude inventories.

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $79.20 on Thursday. The black gold edges lower to the lowest level in seven weeks due to a surprise build in crude inventories in the United States and easing geopolitical tensions in the Middle East. US crude inventories for the week ending April 26 rose by 7.256 million barrels to 460.9 million barrels, compared to a 6.368 million barrel draw in the previous week. The market consensus estimated that stocks would decrease by 2.3 million barrels, according to the US Energy Information Administration (EIA) on Wednesday. This figure registered the highest since June 2023, adding to concerns about a weakening oil demand. Oil traders will shift their attention to US employment data for April on Friday for fresh impetus, including Nonfarm Payrolls (NFP), Unemployment Rate, and Average Hourly Earnings.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 81.8908 | Negative Crossover | Bearish
  • MA 20 : 82.6058 | Negative Crossover | Bearish
  • MA 50 : 81.6521 | Negative Crossover | Bearish

Simple :

  • MA 10 : 82.2015 | Negative Crossover | Bearish
  • MA 20 : 83.6984 | Negative Crossover | Bearish
  • MA 50 : 81.8244 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 38.1529 | Sell Zone | Bearish

Stochastic   Oscillator : 9.2016 | Sell Zone | Positive

Resistance   And Support Levels :

  • R1 : 85.9270 R2 : 87.5646
  • S1 : 80.6256 S2 : 78.9880

Overall Sentiment : Bearish Market Direction : Sell

Trade Suggestion : Limit Sell : 80.55 | Take Profit : 77.49 | Stop Loss : 82.70

CORN FUTURES

Corn futures drift higher as traders monitor US plantings.

Chicago Board of Trade (CBOT) corn futures ticked higher on concerns over rainy weather in the U.S. corn belt that may delay planting. Most-active CBOT July corn CN24 settled up 4 cents at $4.50-3/4 per bushel.Traders are watching planting progress and awaiting a monthly U.S. Department of Agriculture supply and demand report set to be released on May 10. The USDA’s weekly crop progress report late Monday showed corn as 27% seeded, ahead of the five-year average of 22%. Corn planting in the U.S. is right now ahead of both last-year’s pace and the 5-year average pace – any delays may potentially pump the brakes on this progress.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.3474 | Positive Crossover | Bullish
  • MA 20 : 4.3208 | Positive Crossover | Bullish
  • MA 50 : 4.3141 | Positive Crossover | Bullish

Simple :

  • MA 10 : 4.3495 | Positive Crossover | Bullish
  • MA 20 : 4.3059 | Positive Crossover | Bullish
  • MA 50 : 4.2609 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 61.4007 | Buy Zone | Bullish

Stochastic   Oscillator : 85.4099 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 4.3798 R2 : 4.4292
  • S1 : 4.2202 S2 : 4.1708

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 452.76 | Take Profit : 472.55 | Stop Loss : 442.18

Elsewhere In The Commodity Market

Gold down (0.81%) at 2300.97, Silver down (1.07%) at 26.35, Palladium down (0.34%) at 946.00, Platinum up (0.93%) at 950.78, Brent Crude Oil up (0.63%) at 84.09, WTI Crude Oil up (0.6%) at 79.51 as of writing time.

Key Economic Events & Data Release Today:

(USD) FOMC Conference at 00:00. (EUR) German Manufacturing PMI (Apr) Forecast 42.2, Previous 41.9 at 13:25. (USD) Initial Jobless Claims Forecast 212K, Previous 207K at 18:00.