Introduction:

In the world of commodities, Brent Crude Oil prices surged amid concerns about tightening supply as Moscow imposed a temporary fuel export ban. Meanwhile, Gold prices remained steady, navigating the uncertainty created by the Federal Reserve’s warning of sustained high-interest rates. In this ever-evolving landscape, let’s delve into the latest developments shaping these essential markets.

Brent Crude Oil:

Oil prices increase, tight supply back in attention

Oil prices rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand.

Both contracts fell last week after a hawkish Federal Reserve stance rattled global financial markets and raised oil demand concerns. That snapped a three-week rally of more than 10% after Saudi Arabia and Russia constrained supply by extending production cuts to the end of the year.

Expectations of better economic data this week from China, the world’s largest crude importer, also lifted sentiment. However, analysts flagged that oil prices face technical resistance at the November 2022 highs that were hit last week.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 92.48 | Negative Crossover | Bearish
• MA 20: 92.55 | Negative Crossover | Bearish
• MA 50: 91.03 | Positive Crossover | Bullish

Simple:

• MA 5: 92.62 | Negative Crossover | Bearish
• MA 20: 93.09 | Negative Crossover | Bearish
• MA 50: 91.28 | Positive Crossover | Bullish

RSI (Relative Strength Index): 50.06 | Buy Zone | Bullish

Stochastic Oscillator: 8.72 | Sell Zone | Negative

Resistance And Support Levels: 

• R1: 93.52 | R2: 94.97
• S1: 91.76 | S2: 88.94

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 91.11 | Take Profit: 88.94 | Stop Loss: 92.72

GOLD:

Gold prices hold steady amid the Federal Reserve’s interest rate warning and global economic concerns.

Gold prices remained mostly steady on Monday, despite the potential for a further drop due to warnings from the Federal Reserve about prolonged higher interest rates. The strength of the dollar and yield pressures have also contributed to the situation. Over recent weeks, gold has shown minimal fluctuation in its trading range.

The Federal Reserve recently signaled that interest rates could rise again this year and may decrease less than previously anticipated in 2023, possibly remaining above 5%. This has caused investors to favor the dollar as a haven, as global economic conditions appear to be worsening.

Technical Overview :

Moving Averages:

Exponential:

• MA 5: 1923.46 | Positive Crossover | Bullish
• MA 20: 1924.09 | Positive Crossover | Bullish
• MA 50: 1923.32 | Positive Crossover | Bullish

Simple:

• MA 5: 1924.05 | Positive Crossover | Bullish
• MA 20: 1926.033 | Positive Crossover | Bullish
• MA 50: 1922.75 | Positive Crossover | Bullish

RSI (Relative Strength Index): 48.27 | Buy Zone | Positive

Stochastic Oscillator: 33.53| Sell Zone | Negative

Resistance And Support Levels: 

• R1: 1927.38 | R2: 1953.95
• S1: 1904.05| S2: 1888.25

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 1935.28 | Take Profit: 1953.95 | Stop Loss: 1922.72.

Elsewhere In the Commodity Market.

Among industrial metals, copper prices moved little on Monday, amid growing concerns over more economic headwinds in major importer China. XAG/USD turns choppy after rallying near $23.70, US yield rebound.

Gold down (0.1%) at 1922.71, Silver down (0.18%) at 23.50, Palladium down (0.52%) at 1244.17, Platinum down (0.56%) at 922.79, Brent Crude Oil up (0.27%) at 92.21, WTI Crude Oil up (0.34%) at 90.32 as of writing time.

Key Economic Events & Data Release Today:

(EUR) ECB President Lagarde Speaks at 18:30.