. Daily Commodity Analysis - Oil Dips 1% as Investors Watch Fed Meeting

Daily Commodity Analysis – Oil Dips 1% as Investors Watch Fed Meeting

Daily Commodity Analysis – Oil Dips 1% as Investors Watch Fed Meeting

30 Oct 2023

Introduction:

In the commodities market today, Brent Crude Oil is facing a 1% decline as investors tread cautiously, keeping an eye on the U.S. Federal Reserve meeting and the upcoming release of China’s manufacturing data. Meanwhile, Gold prices remain above $2,000, driven by the ongoing Israel-Hamas conflict and the anticipation of the Federal Reserve meeting. Silver is on an upward trajectory, and copper prices are awaiting key economic data from China later this week.

Brent Crude Oil:

Oil down 1% ahead of US, China data

Oil prices declined by more than 1% on Monday as investors exercised caution ahead of two key events: the U.S. Federal Reserve policy meeting and the release of China’s manufacturing data later in the week. This downward movement countered the support provided by heightened Middle East tensions.

Both Brent and WTI had posted a 3% increase on Friday following increased ground operations by Israel in Gaza, raising concerns about the potential for a broader conflict in a region responsible for a third of global oil production.

Investors are closely monitoring the outcome of the U.S. Fed meeting on Wednesday, as well as U.S. job data and the earnings report from tech giant Apple Inc (NASDAQ: AAPL). They are seeking any indications of an economic slowdown that could impact fuel demand in the world’s largest oil consumer.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 88.10| Negative Crossover | Bearish
  • MA 20: 88.52| Negative Crossover | Bearish
  • MA 50: 88.84| Positive Crossover | Bullish

Simple:

  • MA 5: 88.21| Negative Crossover | Bearish
  • MA 20: 89.93| Negative Crossover | Bearish
  • MA 50: 88.23| Negative Crossover | Bullish

RSI (Relative Strength Index): 47.09 | Buy Zone | Bullish

Stochastic Oscillator: 70.34| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 88.38 | R2: 92.69
  • S1: 85.54| S2: 82.22

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 89.52 | Take Profit: 92.69 | Stop Loss: 87.41.

Gold:

Gold price hold above $2,000 as Fed meeting approaches.

Gold prices experienced a minor decline on Monday, but they remained above the crucial $2,000 mark. The ongoing Israel-Hamas conflict has continued to boost demand for safe-haven assets, with uncertainty prevailing ahead of an upcoming Federal Reserve meeting this week.

The price of gold reached a 5-and-a-half-month peak last week due to persistent uncertainty stemming from the Middle East conflict, which has inclined investors toward conventional safe-haven assets.

Attention in the markets has now shifted firmly to the conclusion of a two-day Federal Reserve meeting scheduled for Wednesday, with the widespread anticipation that the central bank will maintain the current interest rates.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 1997.87 | Positive Crossover | Bullish
  • MA 20: 1981.18 | Positive Crossover | Bullish
  • MA 50: 1949.76 | Positive Crossover | Bullish

Simple:

  • MA 5: 1998.35 | Positive Crossover | Bullish
  • MA 20: 1982.76 | Positive Crossover | Bullish
  • MA 50: 1939.77 | Positive Crossover | Bullish

RSI (Relative Strength Index): 65.85 | Buy Zone | Bullish

Stochastic Oscillator: 61.72| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 2009.55 | R2: 2063.07
  • S1: 1972.25| S2: 1939.81

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit : 1985.22 | Take Profit: 2041.99 | Stop Loss: 1951.17.

Elsewhere In the Commodity Market.

Silver (XAG/USD) is showing signs of a gradual upward movement for the second day in a row, reaching a one-week peak near the $23.20 range in the Asian session on Monday. In the realm of industrial metals, copper prices experienced a marginal increase on Monday as market participants awaited crucial economic data from China expected later this week.

Gold down (0.31%) at 1999.72, Silver up (0.01%) at 23.08, Palladium down (0.09%) at 1121.50, Platinum up (0.16%) at 904.45, Brent Crude Oil down (1.14%) at 88.18, WTI Crude Oil down (1.38%) at 84.34 as of writing time.

Key Economic Events & Data Release Today:

(AUD) Retail Sales (MoM) (Sep) Actual 0.9%, Forecast 0.3%, Previous 0.2% at 06:00.

(EUR) German GDP (QoQ) (Q3) Forecast –0.3%, Previous 0.0% at 14:30.

(EUR) German CPI (MoM) (Oct) Forecast 0.2%, Previous 0.3% at 18:30.

(EUR) ECB`s De Guindos Speaks at 18:30.