. Daily Commodity Analysis - Gold steady, silver plunges, oil gains, Corn surges.

Daily Commodity Analysis – Gold steady, silver plunges, oil gains, Corn surges.

Daily Commodity Analysis – Gold steady, silver plunges, oil gains, Corn surges.

27 Feb 2024

Introduction

Gold price remains steady above $2,030, seeking direction from upcoming US macro data. The precious metal gains support as sliding US bond yields weaken the USD, though upside potential is limited amid a cautious market. Meanwhile, Silver (XAG/USD) tumbles to a seven-day low below $23.00, reacting to higher US Treasury yields. Oil prices hold onto gains amidst concerns over Red Sea shipping attacks, supported by signs of improved demand in China. Corn futures see midday gains, surpassing the $4 mark, with attention on disruptions in Ukrainian grain shipments and robust US corn exports.

Markets In Focus Today – GOLD

Gold price holds steady above the $2,030 level, and looks to US macro data for fresh impetus.

Gold price regained some positive traction on Tuesday, albeit lacks follow-through buying. Sliding US bond yields undermine the USD and lend some support to the XAU/USD. The cautious mood also benefits the safe-haven metal, though the upside remains capped. Gold price (XAU/USD) attracts some dip-buyers following the previous day’s modest pullback and holds steady above the $2,030 level heading into the European session on Tuesday. The US Dollar (USD) continues with its struggle to attract buyers in the wake of a fresh leg down in the US Treasury bond yields and turns out to be a key factor lending support to the commodity.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2025.8049 | Positive Crossover | Bullish
  • MA 20 : 2024.9754 | Positive Crossover | Bullish
  • MA 50 : 2022.7816 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2020.1783 | Positive Crossover | Bullish
  • MA 20 : 2025.0434 | Positive Crossover | Bullish
  • MA 50 : 2033.6194 | Positive Crossover | Bullish

RSI (Relative Strength Index): 54.1855 | Buy Zone | Bullish

Stochastic   Oscillator : 82.9134 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2069.3814 R2 : 2087.5486
  • S1 : 2010.5686 S2 : 1992.4014

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 2031.01 | Take Profit: 2056.53 | Stop Loss: 2016.76

SILVER

XAG/USD tumbles to a seven-day low below $23.00, eyes on upcoming US data.

Silver price dives over 2%, as investors react to higher US Treasury bond yields. Failure to hold above the 50-day DMA and $23.00 level triggers an extended sell-off towards $21.88 support. Potential rebound hinges on reclaiming $22.57, with silver possibly oscillating within a tight range near current levels. Read more: Gold price falls as US Treasury yields climb amid weak US DollarSilver prices plummeted to a seven-day low during the mid-North American session on Monday, as US Treasury bond yields climbed while traders braced for the release of US inflation figures late in the week. At the time of writing, the XAG/USD exchanges hands at $22.47, down more than 2.05%.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 22.69 | Negative Crossover | Bearish
  • MA 20 : 22.84 | Negative Crossover | Bearish
  • MA 50 : 22.68 | Negative Crossover | Bearish

Simple :

  • MA 10 : 22.69 | Negative Crossover | Bearish
  • MA 20 : 22.85 | Negative Crossover | Bearish
  • MA 50 : 22.68 | Negative Crossover | Bearish

RSI (Relative Strength Index): 44.07 | Sell Zone | Bearish

Stochastic   Oscillator : 6.7 | Sell Zone | Neutral

Resistance   And Support Levels :

  • R1 : 22.69 R2 : 23.49
  • S1 : 22.04 S2 : 21.38

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 22.62 | Take Profit: 22.04 | Stop Loss: 23.00

BRENT CRUDE OIL

Oil prices cling to gains amid concerns about Red Sea attacks on shipping.

Oil prices on Tuesday mostly held onto gains made a day earlier amid attacks on shipping in the Red Sea that have exacerbated supply worries. Both oil benchmarks settled more than 1% higher on Monday which followed declines of 2%-3% over the previous week as markets factored in a greater likelihood that rate cuts might take longer to come. Oil prices were also supported on Tuesday by indications of improved demand in China. A market focus for the day will be the American Petroleum Institute industry group’s weekly data on U.S. crude inventories which is due to be released at 4:30 p.m. EST.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 82.4066 | Positive Crossover | Bullish
  • MA 20 : 81.7907 | Positive Crossover | Bullish
  • MA 50 : 80.9428 | Positive Crossover | Bullish

Simple :

  • MA 10 : 82.6629 | Negative Crossover | Bearish
  • MA 20 : 81.3748 | Positive Crossover | Bullish
  • MA 50 : 79.9570 | Positive Crossover | Bullish

RSI (Relative Strength Index): 55.5522 | Buy Zone | Bullish

Stochastic   Oscillator : 70.6217 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 83.3603 R2 : 85.5650
  • S1 : 76.2230 S2 : 74.0183

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 81.42 | Take Profit: 84.41 | Stop Loss: 80.00

CORN

Midday Gains for Corn Futures.

The lead month corn market is back above the $4 mark as futures are up 3 to 4 ½ cents so far through midday. Preliminary open interest showed net new selling, down 12,518 contracts on Friday. Polish protestors reportedly vandalized rail cars loaded with Ukrainian grain, destroying 160 MT. The spilled grain was reported as corn. Reporters mentioned this was the 4th incident, though that the other 3 had taken place at the border. The weekly Export Inspections report had 1.242 MMT of corn shipped during the week that ended 2/22. That was up from 1.05 MMT last week and was nearly double shipments from the same week last year. USDA also added ~133k MT of corn shipments to past reports, which brought the season’s total export to 19.49 MMT. That is up from 14.39 MMT ahead of last year’s pace.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.1416 | Negative Crossover | Bearish
  • MA 20 : 4.2243 | Negative Crossover | Bearish
  • MA 50 : 4.4033 | Negative Crossover | Bearish

Simple :

  • MA 10 : 4.1381 | Negative Crossover | Bearish
  • MA 20 : 4.2527 | Negative Crossover | Bearish
  • MA 50 : 4.4330 | Negative Crossover | Bearish

RSI (Relative Strength Index): 34.7778 | Sell Zone | Bearish

Stochastic   Oscillator : 23.0311 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 4.6002 R2 : 4.6768
  • S1 : 4.3518 S2 : 4.2752

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 480.59 | Take Profit: 459.87 | Stop Loss: 495.17

Elsewhere In The Forex Market

Gold is up (0.15%) at 2034.99, Silver is up (0.31%) at 22.57, Palladium is up (0.48%) at 955.35, Platinum is up (0.67%) at 885.75, Brent Crude Oil is up (0.20%) at 81.83, WTI Crude Oil up (0.23%) at 77.76 as of writing time.

Key Economic Events & Data Release Today:

(JPY) National Core CPI (YoY) (Jan) Actual 2.0%, Forecast 1.9%, Previous 2.3% at 05:00. (USD) Core Durable Goods Order (MoM) (Jan) Forecast 0.2%, Previous 0.6% at 19:00. (USD) CB Consumer Confidence (Feb) Forecast 114.8, Previous 114.8 at 20:30.