. Daily Commodity Analysis - Gold soars, copper spikes, oil rallies, corn sinks.

Daily Commodity Analysis – Gold soars, copper spikes, oil rallies, corn sinks.

Daily Commodity Analysis – Gold soars, copper spikes, oil rallies, corn sinks.

02 Apr 2024

Introduction

Gold price remains near its all-time high, showing resilience despite mixed cues. The positive momentum persists for the sixth consecutive day, with geopolitical tensions and doubts over the extent of potential Fed rate cuts providing support. Meanwhile, copper futures rise on upbeat Chinese data but face challenges from increased inventories. Oil prices climb on expectations of heightened demand and Middle East tensions. Conversely, corn prices retreat due to ample supplies and a stronger US dollar.

Markets In Focus Today – GOLD

Gold price consolidates below all-time high amid mixed cues, bullish potential seems intact.

Gold price trades with a positive bias for the sixth straight day and stands tall near the all-time peak.Reduced June Fed rate cut bets continue to underpin the USD and might act as a headwind for the metal.The cautious market mood, along with geopolitical risks, could lend support to the safe-haven XAU/USD.Gold price (XAU/USD) trades with a positive bias for the sixth successive day on Tuesday and remains well within the striking distance of the all-time peak, around the $2,265-$2,266 area touched the previous day. Geopolitical tensions were ratcheted up following reports that an Israeli strike hit a building next to Iran’s embassy in Syria’s capital. This, along with doubt over whether the Federal Reserve (Fed) will cut interest rates three times this year, takes its toll on the global risk sentiment and acts as a tailwind for the safe-haven precious metal.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2211.6816 | Positive Crossover | Bullish
  • MA 20 : 2179.2037 | Positive Crossover | Bullish
  • MA 50 : 2119.7147 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2204.5723 | Positive Crossover | Bullish
  • MA 20 : 2184.0729 | Positive Crossover | Bullish
  • MA 50 : 2094.0522 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 78.8524 | Buy Zone | Bullish

Stochastic   Oscillator : 91.5456 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2244.9097 R2 : 2291.4069
  • S1 : 2094.3849 S2 : 2047.8877

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 2233.21 | Take Profit : 2262.64 | Stop Loss : 2213.59

COPPER

Copper futures rise after positive Chinese data.

Copper prices experienced a rise on Monday, driven by positive Chinese manufacturing data, indicating increased demand for the metal.However, gains were tempered by a surge in inventories. Reuters reported that major Chinese copper smelters were considering output cuts, and had also set no guidance for copper prices in the second quarter. Reports of Chinese production cuts, which herald tighter markets for refined copper, had triggered sharp gains in copper prices earlier in March, putting them at 11-month highs. But these gains were offset by data showing Chinese copper inventories remained robust, which in turn suggested that markets may not be as tight as initially expected.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.006 | Negative Crossover | Bearish
  • MA 20 : 4.016 | Negative Crossover | Bearish
  • MA 50 : 3.984 | Positive Crossover | Bullish

Simple :

  • MA 10 : 4.002 | Negative Crossover | Bearish
  • MA 20 : 4.038 | Positive Crossover | Bullish
  • MA 50 : 3.982 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 46.31 | Buy Zone | Bullish

Stochastic   Oscillator : 11.82 | Sell Zone | Neutral

Resistance   And Support Levels :

  • R1 : 4.019 R2 : 4.151
  • S1 : 3.977 S2 : 3.887

Overall Sentiment : Neutral Market Direction : Buy

Trade Suggestion : Stop Buy : 4.039 | Take Profit : 4.151 | Stop Loss : 3.971

BRENT CRUDE OIL

Oil gains on expectations for higher demand and as Middle East concerns rise.

Oil prices rose on Tuesday, underpinned by signs that demand may improve China and the U.S., the world’s biggest oil consuming nations, and growing concerns of a widening conflict in the Middle East that could affect supply from region.Manufacturing activity in March in China expanded for the first time in six months and in the U.S. for the first time in 1-1/2 years, which should translate to rising oil demand this year. The bullish catalysts for oil prices continue to pile up, with stronger-than-expected economic conditions in China and the U.S. offering a more optimistic demand outlook, while geopolitical tensions in the Middle East continue to heat up with the involvement of Iran.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 86.6058 | Positive Crossover | Bullish
  • MA 20 : 85.5173 | Positive Crossover | Bullish
  • MA 50 : 83.5925 | Positive Crossover | Bullish

Simple :

  • MA 10 : 86.6205 | Positive Crossover | Bullish
  • MA 20 : 85.1051 | Positive Crossover | Bullish
  • MA 50 : 83.0543 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 67.2229 | Buy Zone | Bullish

Stochastic   Oscillator : 94.6721 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 87.7408 R2 : 89.3012
  • S1 : 82.6892 S2 : 81.1288

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 87.32 | Take Profit : 89.69 | Stop Loss : 86.13

CORN

Corn sinks on big supplies.

U.S. grain futures fell as pressure from ample supplies partly unraveled steep gains late last week following a U.S. Department of Agriculture report that projected lower-than-expected U.S. corn plantings. The stronger U.S. dollar DXY added further pressure to grains as it makes dollar-denominated commodities costlier for importers holding other currencies. Grain traders are turning their focus to spring planting weather after the USDA on Thursday pegged corn seedings well below trade expectations. Chicago Board of Trade May corn futures (CK24) were down 6-1/2 cents at $4.35-1/2 a bushel after last Thursday’s USDA data triggered corn’s strongest rally in more than eight months.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.2779 | Negative Crossover | Bearish
  • MA 20 : 4.2693 | Negative Crossover | Bearish
  • MA 50 : 4.3180 | Negative Crossover | Bearish

Simple :

  • MA 10 : 4.2859 | Negative Crossover | Bearish
  • MA 20 : 4.2736 | Negative Crossover | Bearish
  • MA 50 : 4.2759 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 49.6191 | Buy Zone | Bullish

Stochastic   Oscillator : 54.4186 | Buy Zone | Negative

Resistance   And Support Levels :

  • R1 : 4.3971 R2 : 4.4669
  • S1 : 4.1709 S2 : 4.1011

Overall Sentiment : Bearish Market Direction : Sell

Trade Suggestion : Limit Sell : 453.82 | Take Profit : 431.16 | Stop Loss : 471.82

Elsewhere In The Commodity Market

Gold up (0.81%) at 2251.29, Silver up (1.39%) at 25.42, Palladium up (0.51%) at 1010.64, Platinum up (1.51%) at 909.07, Brent Crude Oil up (1.10%) at 88.36, WTI Crude Oil up (1.21%) at 84.72 as of writing time.

Key Economic Events & Data Release Today:

(EUR) German Manufacturing PMI (Mar) Forecast 41.6, Previous 42.5 at 13:25. (GBP) Manufacturing PMI (Mar) Forecast –49.9, Previous –47.5 at 14:00. (GBP) German CPI (MoM) (Mar) Forecast 0.5, Previous 0.4% at 17:30. (USD) JOLTs Job Openings (Feb) Forecast 8.760M, Previous 8.863M at 19:30.