. Daily Commodity Analysis - Gold steady, silver falters, oil surges, gas puzzles despite drops.

Daily Commodity Analysis – Gold steady, silver falters, oil surges, gas puzzles despite drops.

Daily Commodity Analysis – Gold steady, silver falters, oil surges, gas puzzles despite drops.

29 Jan 2024

Introduction

Gold prices maintain modest gains ahead of the Federal Reserve (Fed) meeting, finding support in Middle East tensions and declining US bond yields. Traders remain cautious amid geopolitical concerns, with a drone attack near the Syrian border impacting sentiment. Meanwhile, silver slips below $23.00, signaling a potential downtrend, while oil climbs on escalating Middle East tensions. Natural gas futures decline despite a significant storage drop, as weather forecasts suggest light national demand.

Markets In Focus Today – GOLD

Gold price sticks to modest gains ahead of Fed meeting.

Gold price draws some support from escalating geopolitical tensions in the Middle East. Sliding US bond yields also benefit the XAU/USD, though the uptick lacks follow-through. Traders also seem reluctant ahead of the crucial two-day FOMC monetary policy meeting. Investors set off the critical week, including the US Federal Reserve (Fed) policy announcements, on a cautious footing after a Reuters report quoted US President Joe Biden and officials stating that three US service members were killed and dozens may be wounded after an unmanned aerial drone attack on US forces stationed in northeastern Jordan near the Syrian border. The US economic docket is relatively light on Monday, and hence, the geopolitical developments and the pre-Fed positioning could influence the Gold price action.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2025.63 | Positive Crossover | Bullish
  • MA 20 : 2029.15 | Positive Crossover | Bullish
  • MA 50 : 2020.25 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2022.17 | Positive Crossover | Bullish
  • MA 20 : 2031.21 | Positive Crossover | Bullish
  • MA 50 : 2030.98 | Positive Crossover | Bullish

RSI (Relative Strength Index): 51.10 | Neutral Zone | Neutral

Stochastic   Oscillator : 36.02 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2127.21 R2 : 2168.19
  • S1 : 1994.53 S2 : 1953.54

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 2032.20 | Take Profit: 2168.19 | Stop Loss: 1887.65

SILVER

XAG/USD slips below $23.00.

Silver prices dip, unable to hold above the key $23.00 level, indicating a possible ongoing downtrend. Break below major supports like 200, 50, and 100-day DMAs strengthen the bearish outlook for silver. Silver price retreated late in the North American session after hitting a daily high of $22.97, though buyers’ failure to reclaim the $23.00 exacerbated the grey metal’s fall to current spot prices. Therefore, the XAG/USD exchanges hands at $22.73, down 0.59%. After printing three straight positive days, Silver retraced below $23.00, resuming its ongoing downtrend and forming a ‘bearish after sellers dragged prices below key support levels, like the 200, 50, and 100-day moving averages (DMAs).

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 22.89 | Positive Crossover | Bullish
  • MA 20 : 22.61 | Positive Crossover | Bullish
  • MA 50 : 22.80 | Positive Crossover | Bullish

Simple :

  • MA 10 : 22.85 | Positive Crossover | Bullish
  • MA 20 : 22.61 | Positive Crossover | Bullish
  • MA 50 : 22.80 | Positive Crossover | Bullish

RSI (Relative Strength Index): 58.24 | Buy Zone | Bullish

Stochastic   Oscillator : 89.74 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 23.00 R2 : 23.53
  • S1 : 22.44 S2 : 21.86

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Stop Buy: 23.07 | Take Profit: 23.74 | Stop Loss: 22.69

BRENT CRUDE OIL

Oil climbs on escalating tensions in the Middle East.

Oil prices climbed on Monday after a drone attack on U.S. forces in Jordan added to worries over supply disruption in the Middle East as Houthi rebels stepped up their attacks on vessels in the Red Sea, hitting a Trafigura-operated fuel tanker. Risks of a widening conflict in the Middle East come at the same time that Russian refined product exports are set to fall, with refineries and a major oil terminal under repair following drone attacks by Ukraine. The attack on U.S. troops in a drone strike in Jordan raised concerns of a wider conflict in the oil-rich Middle East.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 80.96 | Positive Crossover | Bullish
  • MA 20 : 79.82 | Positive Crossover | Bullish
  • MA 50 : 79.97 | Positive Crossover | Bullish

Simple :

  • MA 10 : 80.30 | Positive Crossover | Bullish
  • MA 20 : 78.96 | Positive Crossover | Bullish
  • MA 50 : 78.77 | Positive Crossover | Bullish

RSI (Relative Strength Index): 67.45 | Neutral Zone | Neutral

Stochastic   Oscillator : 97.18 | Neutral Zone | Neutral

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: 81.79 | Take Profit: 84.44 | Stop Loss: 80.24

NATURAL GAS

Large Weekly Storage Drop Fails to Rally Prices.

Natural gas futures fall, continuing a two-week decline. A significant storage drop doesn’t boost natural gas prices. Weather forecasts suggest light national demand ahead. U.S. Natural Gas Futures Decline Amid Storage and Production Trends. Despite the largest weekly decline in natural gas supplies in storage since February 2021, prices have not rallied. The Energy Information Administration (EIA) reported a substantial drop of 326 billion cubic feet (bcf) for the week ending January 19.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2.51 | Negative Crossover | Bearish
  • MA 20 : 2.58 | Negative Crossover | Bearish
  • MA 50 : 2.63 | Negative Crossover | Bearish

Simple :

  • MA 10 : 2.53 | Negative Crossover | Bearish
  • MA 20 : 2.70 | Negative Crossover | Bearish
  • MA 50 : 2.57 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.27 | Neutral Zone | Neutral

Stochastic   Oscillator : 7.38 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2.60 R2 : 2.71
  • S1 : 2.22 S2 : 2.11

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 2.25 | Take Profit: 2.06 | Stop Loss: 2.39

Elsewhere In The Commodity Market

Gold is up (0.68%) at 2031.39, Silver is up (0.92%) at 22.98, Palladium is down (0.82%) at 949.64, Platinum is down (0.12%) at 914.42, Brent Crude is up (0.59%) at 83.43, WTI Crude Oil down (0.53%) at 78.41 as of writing time.

Key Economic Events & Data Release Today:

(EUR) ECB’s De Guindos Speaks at 08:10. (AUD) Retail Sales (MoM) (Dec) Forecast –0.7%, Previous 2.0% at 19:30.